Cadence Bank (NYSE:CADE) & MetroCity Bankshares (NASDAQ:MCBS) Head to Head Contrast

MetroCity Bankshares (NASDAQ:MCBS) and Cadence Bank (NYSE:CADE) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MetroCity Bankshares and Cadence Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	2	0	0	2.00
Cadence Bank	0	9	2	0	2.18

MetroCity Bankshares currently has a consensus target price of $31.00, indicating a potential upside of 13.55%. Cadence Bank has a consensus target price of $42.33, indicating a potential downside of 1.41%. Given MetroCity Bankshares’ higher probable upside, analysts plainly believe MetroCity Bankshares is more favorable than Cadence Bank.

Risk and Volatility

MetroCity Bankshares has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Cadence Bank has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Dividends

MetroCity Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.7%. Cadence Bank pays an annual dividend of $1.10 per share and has a dividend yield of 2.6%. MetroCity Bankshares pays out 38.8% of its earnings in the form of a dividend. Cadence Bank pays out 39.9% 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. Cadence Bank has increased its dividend for 14 consecutive years. MetroCity Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

25.3% of MetroCity Bankshares shares are held by institutional investors. Comparatively, 84.6% of Cadence Bank shares are held by institutional investors. 27.5% of MetroCity Bankshares shares are held by insiders. Comparatively, 2.2% of Cadence Bank shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares MetroCity Bankshares and Cadence Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	28.25%	15.39%	1.84%
Cadence Bank	18.12%	10.16%	1.14%

Earnings & Valuation

This table compares MetroCity Bankshares and Cadence Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MetroCity Bankshares	$235.98 million	2.95	$64.50 million	$2.58	10.58
Cadence Bank	$3.01 billion	2.60	$523.60 million	$2.76	15.56

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

Summary

Cadence Bank 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 Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company’s products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.