In an analysis comparing two small-cap finance companies, MetroCity Bankshares (NASDAQ:MCBS) outperforms Benchmark Bankshares (OTCMKTS:BMBN) across multiple investment metrics. The evaluation focuses on institutional ownership, dividends, valuation, risk, profitability, earnings, and analyst recommendations.
Institutional Ownership and Insider Holdings
Institutional investors hold approximately 25.3% of MetroCity Bankshares shares, significantly higher than the 3.2% ownership seen at Benchmark Bankshares. Insider ownership also favors MetroCity, with 27.5% of its shares held by insiders compared to 14.0% for Benchmark. This strong institutional backing often indicates confidence among major investors regarding a company’s potential for long-term market outperformance.
Volatility and Risk Assessment
When examining volatility, Benchmark Bankshares exhibits a beta of 0.17, suggesting its share price is 83% less volatile than the S&P 500 index. Conversely, MetroCity Bankshares has a beta of 0.65, indicating it is 35% less volatile than the broader market. This lower risk profile may appeal to conservative investors seeking stability in their portfolios.
Analysts have provided insights into the future performance of both companies. MetroCity Bankshares boasts a consensus target price of $31.00, which represents an upside potential of 17.47%. This more favorable outlook aligns with analyst recommendations that lean towards MetroCity as a stronger investment choice.
Financial Performance and Valuation
In terms of financial performance, MetroCity Bankshares surpasses Benchmark Bankshares in both revenue and earnings per share. Despite this, Benchmark is trading at a lower price-to-earnings ratio, suggesting it may be the more affordable option currently. However, the stronger financial metrics of MetroCity could justify a higher valuation in the long run.
Profitability metrics further illustrate the differences between the two institutions. MetroCity’s net margins, return on equity, and return on assets are notably superior, reinforcing its position as a more profitable entity.
Company Profiles
Benchmark Bankshares, Inc. serves as the holding company for Benchmark Community Bank, which provides a range of banking products and services within the United States. Founded in 1971 and based in Kenbridge, Virginia, the bank offers various deposit accounts, personal and commercial loans, as well as wealth management services.
On the other hand, MetroCity Bankshares, Inc., established in 2006 and headquartered in Atlanta, Georgia, operates as the bank holding company for Metro City Bank. It provides consumer and commercial banking services, including a variety of loan products and online banking solutions.
In summary, MetroCity Bankshares leads Benchmark Bankshares in 13 out of the 15 assessed factors. This comprehensive comparison suggests that investors may find greater value and potential growth opportunities with MetroCity Bankshares.
