Head-To-Head Review: Metropolitan Bank (NYSE:MCB) & BV Financial (NASDAQ:BVFL)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for BV Financial and Metropolitan Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BV Financial	0	1	0	0	2.00
Metropolitan Bank	0	2	2	0	2.50

Metropolitan Bank has a consensus target price of $84.50, suggesting a potential upside of 5.51%. Given Metropolitan Bank’s stronger consensus rating and higher possible upside, analysts plainly believe Metropolitan Bank is more favorable than BV Financial.

Valuation & Earnings

This table compares BV Financial and Metropolitan Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BV Financial	$49.20 million	3.33	$11.72 million	$1.09	16.90
Metropolitan Bank	$492.21 million	1.68	$66.69 million	$5.76	13.90

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BV Financial	20.80%	7.08%	1.51%
Metropolitan Bank	12.46%	8.71%	0.82%

Insider and Institutional Ownership

42.7% of BV Financial shares are owned by institutional investors. Comparatively, 79.8% of Metropolitan Bank shares are owned by institutional investors. 11.8% of BV Financial shares are owned by company insiders. Comparatively, 6.1% of Metropolitan Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

BV Financial has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Metropolitan Bank has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Summary

Metropolitan Bank beats BV Financial on 9 of the 14 factors compared between the two stocks.

About BV Financial

BV Financial, Inc. operates as the holding company for BayVanguard Bank that provides various financial services to individuals and businesses in Maryland. The company offers checking and money market accounts, savings accounts, and certificates of deposits. Its loan products include real estate, home equity, construction, lot, auto, boat, and other personal loans; and commercial lending products, such as commercial equipment/installation, commercial real estate, construction, investment real estate, lines of credit, and SBA loans, as well as loans for short-term real estate purchase, renovation, and sale projects. The company offers ATM, overdraft, safe deposit, bill pay, remote deposit capture, ACH origination, merchant, and online banking services. BV Financial, Inc. was founded in 1873 and is headquartered in Baltimore, Maryland.

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.