Bogota Financial (NASDAQ:BSBK – Get Free Report) and MetroCity Bankshares (NASDAQ:MCBS – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.
Profitability
This table compares Bogota Financial and MetroCity Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bogota Financial | 6.06% | 1.84% | 0.29% |
| MetroCity Bankshares | 29.44% | 15.68% | 1.87% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Bogota Financial and MetroCity Bankshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bogota Financial | 0 | 1 | 0 | 0 | 2.00 |
| MetroCity Bankshares | 0 | 1 | 1 | 0 | 2.50 |
MetroCity Bankshares has a consensus target price of $33.00, indicating a potential downside of 8.46%. Given MetroCity Bankshares’ stronger consensus rating and higher possible upside, analysts plainly believe MetroCity Bankshares is more favorable than Bogota Financial.
Volatility and Risk
Bogota Financial has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.
Earnings and Valuation
This table compares Bogota Financial and MetroCity Bankshares”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bogota Financial | $44.78 million | 2.64 | $2.09 million | $0.21 | 44.14 |
| MetroCity Bankshares | $246.01 million | 4.22 | $68.53 million | $3.05 | 11.82 |
MetroCity Bankshares has higher revenue and earnings than Bogota Financial. MetroCity Bankshares is trading at a lower price-to-earnings ratio than Bogota Financial, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
11.6% of Bogota Financial shares are held by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are held by institutional investors. 3.7% of Bogota Financial shares are held by company insiders. Comparatively, 20.2% of MetroCity Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
MetroCity Bankshares beats Bogota Financial on 13 of the 14 factors compared between the two stocks.
About Bogota Financial
Bogota Financial Corp. operates as the bank holding company for Bogota Savings Bank that provides banking products and services in the United States. It offers deposit accounts, including demand accounts, savings accounts, money market accounts, and certificate of deposit accounts. The company also provides one-to four-family residential real estate loans, and commercial real estate and multi-family loans; consumer loans, such as home equity loans and lines of credit; commercial and industrial loans; and construction loans; and buys, sells, and holds investment securities. It operates through various offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, and Teaneck, as well as through a loan production office in Spring Lake, New Jersey. The company was founded in 1893 and is based in Teaneck, New Jersey. Bogota Financial Corp. operates as a subsidiary of Bogota Financial, MHC.
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.
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