MetroCity Bankshares (NASDAQ:MCBS) vs. Dime Community Bancshares (NASDAQ:DCOM) Head-To-Head Comparison

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

Dividends

MetroCity Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. Dime Community Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. MetroCity Bankshares pays out 38.0% of its earnings in the form of a dividend. Dime Community Bancshares pays out 42.4% 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. Dime Community Bancshares has increased its dividend for 2 consecutive years. MetroCity Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

MetroCity Bankshares has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Dime Community Bancshares has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares MetroCity Bankshares and Dime Community Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MetroCity Bankshares	$155.63 million	4.91	$68.71 million	$2.63	11.40
Dime Community Bancshares	$730.38 million	2.18	$110.68 million	$2.36	15.35

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

Insider & Institutional Ownership

25.3% of MetroCity Bankshares shares are owned by institutional investors. Comparatively, 75.3% of Dime Community Bancshares shares are owned by institutional investors. 27.5% of MetroCity Bankshares shares are owned by company insiders. Comparatively, 7.1% of Dime Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares MetroCity Bankshares and Dime Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	27.93%	15.73%	1.89%
Dime Community Bancshares	15.15%	9.12%	0.83%

Analyst Ratings

This is a summary of recent recommendations and price targets for MetroCity Bankshares and Dime Community Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	2	0	0	2.00
Dime Community Bancshares	0	3	2	0	2.40

MetroCity Bankshares presently has a consensus target price of $31.00, suggesting a potential upside of 3.44%. Dime Community Bancshares has a consensus target price of $38.33, suggesting a potential upside of 5.81%. Given Dime Community Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Dime Community Bancshares is more favorable than MetroCity Bankshares.

Summary

Dime Community Bancshares beats MetroCity Bankshares on 9 of the 17 factors compared between the two stocks.

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.

About Dime Community Bancshares

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services. The company accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. It also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, the company invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, it offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was founded in 1910 and is headquartered in Hauppauge, New York.