Contrasting MetroCity Bankshares (NASDAQ:MCBS) and Fifth District Bancorp (NASDAQ:FDSB)

Fifth District Bancorp (NASDAQ:FDSB) and MetroCity Bankshares (NASDAQ:MCBS) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Volatility & Risk

Fifth District Bancorp has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Earnings and Valuation

This table compares Fifth District Bancorp and MetroCity Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth District Bancorp	$19.29 million	3.78	-$1.08 million	$0.73	18.08
MetroCity Bankshares	$235.98 million	2.82	$64.50 million	$2.58	10.13

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

Insider and Institutional Ownership

25.3% of MetroCity Bankshares shares are owned by institutional investors. 4.5% of Fifth District Bancorp shares are owned by insiders. Comparatively, 27.5% of MetroCity Bankshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Fifth District Bancorp and MetroCity Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth District Bancorp	1	0	0	0	1.00
MetroCity Bankshares	0	2	0	0	2.00

MetroCity Bankshares has a consensus target price of $31.00, indicating a potential upside of 18.64%. Given MetroCity Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe MetroCity Bankshares is more favorable than Fifth District Bancorp.

Profitability

This table compares Fifth District Bancorp and MetroCity Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth District Bancorp	14.27%	2.88%	0.69%
MetroCity Bankshares	28.25%	15.39%	1.84%

Summary

MetroCity Bankshares beats Fifth District Bancorp on 11 of the 13 factors compared between the two stocks.

About Fifth District Bancorp

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.

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.