Reviewing MetroCity Bankshares (NASDAQ:MCBS) & Auburn National Bancorporation (NASDAQ:AUBN)

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

Insider and Institutional Ownership

39.5% of Auburn National Bancorporation shares are owned by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are owned by institutional investors. 25.1% of Auburn National Bancorporation shares are owned by insiders. Comparatively, 27.5% of MetroCity Bankshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Auburn National Bancorporation and MetroCity Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Auburn National Bancorporation	$32.14 million	2.96	$6.40 million	$2.05	13.26
MetroCity Bankshares	$235.98 million	2.90	$64.50 million	$2.58	10.40

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

Analyst Ratings

This is a summary of current ratings for Auburn National Bancorporation and MetroCity Bankshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auburn National Bancorporation	0	1	0	0	2.00
MetroCity Bankshares	0	2	0	0	2.00

MetroCity Bankshares has a consensus price target of $31.00, suggesting a potential upside of 15.54%. Given MetroCity Bankshares’ higher possible upside, analysts clearly believe MetroCity Bankshares is more favorable than Auburn National Bancorporation.

Risk & Volatility

Auburn National Bancorporation has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Dividends

Auburn National Bancorporation pays an annual dividend of $1.08 per share and has a dividend yield of 4.0%. MetroCity Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.7%. Auburn National Bancorporation pays out 52.7% of its earnings in the form of a dividend. MetroCity Bankshares pays out 38.8% 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.

Profitability

This table compares Auburn National Bancorporation and MetroCity Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Auburn National Bancorporation	16.42%	8.48%	0.71%
MetroCity Bankshares	28.25%	15.39%	1.84%

Summary

MetroCity Bankshares beats Auburn National Bancorporation on 10 of the 14 factors compared between the two stocks.

About Auburn National Bancorporation

Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company offers checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic banking services; and safe deposit boxes. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.

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.