Head to Head Survey: MetroCity Bankshares (NASDAQ:MCBS) & Grupo Cibest (NYSE:CIB)

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

Volatility and Risk

MetroCity Bankshares has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Grupo Cibest has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Earnings and Valuation

This table compares MetroCity Bankshares and Grupo Cibest”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MetroCity Bankshares	$246.01 million	4.08	$68.53 million	$2.88	12.11
Grupo Cibest	$10.45 billion	2.18	$764.13 million	$5.13	18.70

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

Insider and Institutional Ownership

25.3% of MetroCity Bankshares shares are held by institutional investors. 20.2% of MetroCity Bankshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for MetroCity Bankshares and Grupo Cibest, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetroCity Bankshares	0	1	1	0	2.50
Grupo Cibest	1	5	3	0	2.22

MetroCity Bankshares currently has a consensus target price of $33.00, suggesting a potential downside of 5.42%. Grupo Cibest has a consensus target price of $90.83, suggesting a potential downside of 5.29%. Given Grupo Cibest’s higher possible upside, analysts plainly believe Grupo Cibest is more favorable than MetroCity Bankshares.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MetroCity Bankshares	28.40%	15.16%	1.82%
Grupo Cibest	10.80%	20.87%	2.22%

Dividends

MetroCity Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 3.3%. Grupo Cibest pays an annual dividend of $5.45 per share and has a dividend yield of 5.7%. MetroCity Bankshares pays out 40.3% of its earnings in the form of a dividend. Grupo Cibest pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Grupo Cibest beats MetroCity Bankshares on 9 of the 16 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 Grupo Cibest

Bancolombia S.A., together with its subsidiaries, provides banking products and services in Colombia and internationally. The company operates through nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and All Other. It offers checking and savings accounts, money market accounts, time deposits, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, and overdrafts; factoring; and financial and operating leasing services. The company provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services comprising selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency and trade finance solutions; letters of credit and bills collection; insurance and bancassurance products; telephone and mobile phone banking services; and online and computer banking services. Further, the company provides project and acquisition finance, loan syndication, corporate loans, debt and equity capital markets, principal investments, mergers and acquisition, hedging strategy advisories, restructurings, and structured financing; mutual and pension funds, private equity funds, payment and corporate trust, and custody; internet-based trading platform; inter-bank lending and repurchase agreements; managing escrow accounts, and investment and real estate funds; credit cards; roadside and medical assistance services; and transportation, maintenance and remodeling, and outsourcing services, as well as provides technology services. Bancolombia S.A. was founded in 1875 and is headquartered in Medellín, Colombia.