Cadence Bank (NYSE:CADE) and MetroCity Bankshares (NASDAQ:MCBS) Head to Head Survey

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

Analyst Recommendations

This is a summary of current ratings for Cadence Bank and MetroCity Bankshares, as reported by MarketBeat.com.

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

Cadence Bank presently has a consensus target price of $42.33, suggesting a potential downside of 5.02%. MetroCity Bankshares has a consensus target price of $31.00, suggesting a potential upside of 12.08%. Given MetroCity Bankshares’ higher probable upside, analysts clearly believe MetroCity Bankshares is more favorable than Cadence Bank.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadence Bank	$2.90 billion	2.80	$523.60 million	$2.76	16.15
MetroCity Bankshares	$235.98 million	2.99	$64.50 million	$2.58	10.72

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.

Dividends

Cadence Bank pays an annual dividend of $1.10 per share and has a dividend yield of 2.5%. MetroCity Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Cadence Bank pays out 39.9% of its earnings in the form of a dividend. MetroCity Bankshares pays out 38.8% 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 raised its dividend for 14 consecutive years. MetroCity Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cadence Bank	18.15%	9.97%	1.13%
MetroCity Bankshares	28.25%	15.39%	1.84%

Volatility & Risk

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

Summary

Cadence Bank beats MetroCity Bankshares on 9 of the 17 factors compared between the two stocks.

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.

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.