Head to Head Comparison: MetroCity Bankshares (NASDAQ:MCBS) & Community Trust Bancorp (NASDAQ:CTBI)

Community Trust Bancorp (NASDAQ:CTBI) and MetroCity Bankshares (NASDAQ:MCBS) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Volatility and Risk

Community Trust Bancorp has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares Community Trust Bancorp and MetroCity Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Trust Bancorp	21.64%	10.93%	1.35%
MetroCity Bankshares	25.54%	14.97%	1.66%

Dividends

Community Trust Bancorp pays an annual dividend of $1.88 per share and has a dividend yield of 3.6%. MetroCity Bankshares pays an annual dividend of $0.92 per share and has a dividend yield of 2.9%. Community Trust Bancorp pays out 42.7% of its earnings in the form of a dividend. MetroCity Bankshares pays out 39.7% 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. Community Trust Bancorp has increased its dividend for 44 consecutive years. Community Trust Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings for Community Trust Bancorp and MetroCity Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Trust Bancorp	0	0	3	0	3.00
MetroCity Bankshares	0	1	0	0	2.00

Community Trust Bancorp currently has a consensus price target of $57.67, suggesting a potential upside of 9.28%. MetroCity Bankshares has a consensus price target of $36.00, suggesting a potential upside of 15.24%. Given MetroCity Bankshares’ higher possible upside, analysts clearly believe MetroCity Bankshares is more favorable than Community Trust Bancorp.

Institutional & Insider Ownership

60.2% of Community Trust Bancorp shares are owned by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are owned by institutional investors. 4.3% of Community Trust Bancorp shares are owned by company insiders. Comparatively, 27.5% of MetroCity Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Community Trust Bancorp and MetroCity Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Trust Bancorp	$239.57 million	3.98	$78.00 million	$4.40	11.99
MetroCity Bankshares	$135.01 million	5.86	$51.61 million	$2.32	13.47

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

Summary

Community Trust Bancorp beats MetroCity Bankshares on 9 of the 17 factors compared between the two stocks.

About Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.

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.