MetroCity Bankshares (NASDAQ:MCBS) vs. Midland States Bancorp (NASDAQ:MSBI) Critical Contrast

MetroCity Bankshares (NASDAQ:MCBSGet Rating) and Midland States Bancorp (NASDAQ:MSBIGet Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation & Earnings

This table compares MetroCity Bankshares and Midland States Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MetroCity Bankshares $142.54 million 3.89 $61.70 million $2.66 8.18
Midland States Bancorp $307.72 million 1.99 $81.32 million $3.57 7.69

Midland States Bancorp has higher revenue and earnings than MetroCity Bankshares. Midland States Bancorp is trading at a lower price-to-earnings ratio than MetroCity Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MetroCity Bankshares and Midland States Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MetroCity Bankshares 43.29% 22.73% 2.34%
Midland States Bancorp 26.43% 12.79% 1.19%

Institutional and Insider Ownership

20.5% of MetroCity Bankshares shares are owned by institutional investors. Comparatively, 59.1% of Midland States Bancorp shares are owned by institutional investors. 26.7% of MetroCity Bankshares shares are owned by company insiders. Comparatively, 5.8% of Midland States Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

MetroCity Bankshares has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Midland States Bancorp has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MetroCity Bankshares and Midland States Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MetroCity Bankshares 0 0 0 0 N/A
Midland States Bancorp 0 1 0 0 2.00

Midland States Bancorp has a consensus target price of $28.00, suggesting a potential upside of 1.97%. Given Midland States Bancorp’s higher probable upside, analysts clearly believe Midland States Bancorp is more favorable than MetroCity Bankshares.

Dividends

MetroCity Bankshares pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. Midland States Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 4.2%. MetroCity Bankshares pays out 22.6% of its earnings in the form of a dividend. Midland States Bancorp pays out 32.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Midland States Bancorp has raised its dividend for 6 consecutive years. Midland States Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Midland States Bancorp beats MetroCity Bankshares on 8 of the 15 factors compared between the two stocks.

MetroCity Bankshares Company Profile (Get Rating)

MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that provides banking products and services in the United States. It provides consumer and commercial checking accounts, savings accounts, certificates of deposits, money transfers, and other banking services. The company also offers construction and development, commercial real estate, commercial and industrial, single family residential mortgage, small business administration, and other consumer loans; and online banking, treasury management, wire transfer, automated clearing house, and cash management services. It serves small to medium-sized businesses, individuals, businesses, municipalities, and other entities. The company operates 19 full-service branch locations in Alabama, Florida, Georgia, New York, New Jersey, Texas, and Virginia. The company was founded in 2006 and is headquartered in Doraville, Georgia.

Midland States Bancorp Company Profile (Get Rating)

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Wealth Management, and Other segments. The company accepts various deposits, such as checking, savings, money market, and sweep accounts, as well as certificates of deposits. It also offers term loans to purchase capital equipment; lines of credit for working capital and operational purposes; commercial real estate loans for owner occupied and non-owner occupied commercial property, as well as farmland loans; construction and land development loans developers of commercial real estate investment properties, residential developments, individual clients for construction of single family homes, as well as to construct owner-user properties; and residential real estate loans and home equity lines of credit.. In addition, the company provides consumer installment loans for the purchase of cars, boats, and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; commercial equipment leasing; and trust and wealth management products and services, including financial and estate planning, trustee and custodial services, investment management, tax and insurance planning, business planning, corporate retirement plan consulting and administration, and retail brokerage services. As of December 31, 2021, it operated 52 full-service banking offices. The company was founded in 1881 and is headquartered in Effingham, Illinois.

Receive News & Ratings for MetroCity Bankshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MetroCity Bankshares and related companies with MarketBeat.com's FREE daily email newsletter.