Reviewing Metropolitan Bank (NYSE:MCB) & Byline Bancorp (NYSE:BY)

Byline Bancorp (NYSE:BY) and Metropolitan Bank (NYSE:MCB) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Dividends

Byline Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.5%. Metropolitan Bank pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Byline Bancorp pays out 15.6% of its earnings in the form of a dividend. Metropolitan Bank pays out 12.3% 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. Byline Bancorp has increased its dividend for 1 consecutive years. Byline Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Byline Bancorp 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
Byline Bancorp	$633.15 million	2.29	$130.05 million	$3.07	10.38
Metropolitan Bank	$527.15 million	2.05	$71.10 million	$8.12	10.71

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Byline Bancorp and Metropolitan Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Byline Bancorp	0	2	2	0	2.50
Metropolitan Bank	0	1	3	1	3.00

Byline Bancorp presently has a consensus price target of $34.67, indicating a potential upside of 8.74%. Metropolitan Bank has a consensus price target of $95.00, indicating a potential upside of 9.26%. Given Metropolitan Bank’s stronger consensus rating and higher possible upside, analysts plainly believe Metropolitan Bank is more favorable than Byline Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Byline Bancorp	21.86%	11.56%	1.47%
Metropolitan Bank	15.89%	10.95%	1.04%

Institutional and Insider Ownership

67.7% of Byline Bancorp shares are held by institutional investors. Comparatively, 79.8% of Metropolitan Bank shares are held by institutional investors. 28.8% of Byline Bancorp shares are held by company insiders. Comparatively, 5.5% of Metropolitan Bank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Byline Bancorp has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Metropolitan Bank has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

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.