Contrasting Capital City Bank Group (NASDAQ:CCBG) and MetroCity Bankshares (NASDAQ:MCBS)

Capital City Bank Group (NASDAQ:CCBG) and MetroCity Bankshares (NASDAQ:MCBS) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Volatility & Risk

Capital City Bank Group has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Insider and Institutional Ownership

44.6% of Capital City Bank Group shares are held by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are held by institutional investors. 19.6% of Capital City Bank Group shares are held by company insiders. Comparatively, 27.5% of MetroCity Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Capital City Bank Group and MetroCity Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital City Bank Group	0	0	1	0	3.00
MetroCity Bankshares	0	1	0	0	2.00

Capital City Bank Group currently has a consensus target price of $45.00, suggesting a potential upside of 2.60%. MetroCity Bankshares has a consensus target price of $34.00, suggesting a potential upside of 13.56%. Given MetroCity Bankshares’ higher probable upside, analysts plainly believe MetroCity Bankshares is more favorable than Capital City Bank Group.

Dividends

Capital City Bank Group pays an annual dividend of $0.96 per share and has a dividend yield of 2.2%. MetroCity Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. Capital City Bank Group pays out 28.1% of its earnings in the form of a dividend. MetroCity Bankshares pays out 39.1% 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. Capital City Bank Group has raised its dividend for 11 consecutive years.

Profitability

This table compares Capital City Bank Group and MetroCity Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital City Bank Group	20.86%	11.56%	1.34%
MetroCity Bankshares	27.98%	15.61%	1.83%

Earnings and Valuation

This table compares Capital City Bank Group and MetroCity Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital City Bank Group	$270.63 million	2.77	$52.92 million	$3.42	12.82
MetroCity Bankshares	$235.98 million	3.24	$64.50 million	$2.56	11.70

MetroCity Bankshares has lower revenue, but higher earnings than Capital City Bank Group. MetroCity Bankshares is trading at a lower price-to-earnings ratio than Capital City Bank Group, indicating that it is currently the more affordable of the two stocks.

Summary

MetroCity Bankshares beats Capital City Bank Group on 9 of the 17 factors compared between the two stocks.

About Capital City Bank Group

Capital City Bank Group, Inc. operates as the financial holding company for Capital City Bank that provides a range of banking- related services to individual and corporate clients. The company offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as commercial leasing and letters of credit; treasury management services; and merchant credit card transaction processing services. It also provides commercial and residential real estate lending products, as well as fixed and adjustable-rate residential mortgage loans; personal, automobile, boat/RV, and home equity loans; and credit card programs. In addition, the company offers institutional banking services, including customized checking and savings accounts, cash management systems, tax-exempt loans, lines of credit, and term loans to meet the needs of state and local governments, public schools and colleges, charities, membership, and not-for-profit associations. Further, it provides consumer banking services comprising checking accounts, savings programs, interactive/automated teller machines, debit/credit cards, night deposit services, safe deposit facilities, and online and mobile banking services. Additionally, the company provides asset management for individuals through agency, personal trust, IRA, and personal investment management accounts; and various retail securities products, such as the U.S. government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care, as well as business, estate, financial, insurance and business planning, tax planning, and asset protection advisory services. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.

About MetroCity Bankshares

MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that engages in the provision of banking products and services in the United States. It offers customary banking services, such as consumer and commercial checking accounts, savings, and money market accounts, as well as certificates of deposit. The company also provides commercial and consumer loans, including single family residential loans; construction and development, and owner and non-owner occupied commercial real estate loans; letters of credit; and commercial and industrial loans, residential mortgage loans, and SBA loans. In addition, it offers online banking services, which include access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions, such as remote check deposit with mobile bill pay; and automated teller machines and telephone banking services. Further, it provides debit cards for checking customers, direct deposits, and cashier's checks; treasury management services, including wire transfer, automated clearing house, and stop payments services; and cash management deposit products, such as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. The company was founded in 2006 and is headquartered in Atlanta, Georgia.