Financial Review: Mvb Financial (NASDAQ:MVBF) & Metropolitan Bank (NYSE:MCB)

Mvb Financial (NASDAQ:MVBF) and Metropolitan Bank (NYSE:MCB) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Valuation & Earnings

This table compares Mvb Financial and Metropolitan Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mvb Financial	$228.76 million	1.47	$20.09 million	$1.30	20.27
Metropolitan Bank	$492.21 million	1.58	$66.69 million	$6.17	12.08

Metropolitan Bank has higher revenue and earnings than Mvb Financial. Metropolitan Bank is trading at a lower price-to-earnings ratio than Mvb Financial, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Mvb Financial has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Metropolitan Bank has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Mvb Financial and Metropolitan Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mvb Financial	0	2	5	0	2.71
Metropolitan Bank	0	2	3	0	2.60

Mvb Financial currently has a consensus target price of $29.25, suggesting a potential upside of 11.01%. Metropolitan Bank has a consensus target price of $82.67, suggesting a potential upside of 10.87%. Given Mvb Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Mvb Financial is more favorable than Metropolitan Bank.

Profitability

This table compares Mvb Financial and Metropolitan Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mvb Financial	7.84%	5.60%	0.53%
Metropolitan Bank	13.68%	10.69%	1.03%

Dividends

Mvb Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. Metropolitan Bank pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Mvb Financial pays out 52.3% of its earnings in the form of a dividend. Metropolitan Bank pays out 9.7% 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.

Insider & Institutional Ownership

52.7% of Mvb Financial shares are held by institutional investors. Comparatively, 79.8% of Metropolitan Bank shares are held by institutional investors. 11.7% of Mvb Financial shares are held by company insiders. Comparatively, 6.1% of Metropolitan Bank shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Metropolitan Bank beats Mvb Financial on 10 of the 16 factors compared between the two stocks.

About Mvb Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.

About Metropolitan Bank

Metropolitan Bank Holding Corp. operates as the bank holding company for Metropolitan Commercial Bank that provides a range of business, commercial, and retail banking products and services to small businesses, middle-market enterprises, public entities, and individuals in the New York metropolitan area. The company offers checking, savings, term deposit, money market, demand deposit, and other interest-bearing transaction accounts. It also provides lending products, including commercial real estate, multi-family, construction, and one-to four-family real estate loans; commercial and industrial loans; consumer loans; acquisition and renovation loans; loans to refinance or return borrower equity; loans on owner-occupied properties; working capital lines of credit; trade finance and letters of credit; and term loans. In addition, the company offers cash management services, as well as online and mobile banking, ACH, remote deposit capture, and debit cards. The company was formerly known as Metbank Holding Corp. and changed its name to Metropolitan Bank Holding Corp. in January 2007. Metropolitan Bank Holding Corp. was incorporated in 1997 and is headquartered in New York, New York.