Critical Analysis: Thomasville Bancshares (OTCMKTS:THVB) vs. MetroCity Bankshares (NASDAQ:MCBS)

Thomasville Bancshares (OTCMKTS:THVB) and MetroCity Bankshares (NASDAQ:MCBS) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

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

Volatility & Risk

Thomasville Bancshares has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Dividends

Thomasville Bancshares pays an annual dividend of $2.90 per share and has a dividend yield of 2.8%. MetroCity Bankshares pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. Thomasville Bancshares pays out 41.1% of its earnings in the form of a dividend. MetroCity Bankshares pays out 41.9% 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Thomasville Bancshares and MetroCity Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomasville Bancshares	0	0	0	0	0.00
MetroCity Bankshares	0	1	1	0	2.50

MetroCity Bankshares has a consensus target price of $33.00, suggesting a potential downside of 2.31%. Given MetroCity Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe MetroCity Bankshares is more favorable than Thomasville Bancshares.

Valuation and Earnings

This table compares Thomasville Bancshares and MetroCity Bankshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomasville Bancshares	$137.59 million	4.84	$44.71 million	$7.05	14.89
MetroCity Bankshares	$246.01 million	3.94	$68.53 million	$2.77	12.19

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

Profitability

This table compares Thomasville Bancshares and MetroCity Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thomasville Bancshares	N/A	N/A	N/A
MetroCity Bankshares	28.16%	15.09%	1.79%

Summary

MetroCity Bankshares beats Thomasville Bancshares on 12 of the 16 factors compared between the two stocks.

About Thomasville Bancshares

Thomasville Bancshares, Inc. operates as the bank holding company for Thomasville National Bank that provides a range of banking services to individual and corporate customers primarily in Thomas and Glynn counties, Georgia, Leon County, Florida, and the surrounding counties. The company offers checking and savings accounts; money market accounts; and certificates of deposits. It also provides commercial real estate mortgage loans, such as non-farm and non-residential commercial real estate loans, construction loans for commercial businesses, multifamily loans secured by income producing properties, and farmland; and 1-4 family residential loans, including first mortgage liens, junior liens, and home equity lines. In addition, the company offers commercial, financial, and agricultural loans; consumer loans comprising direct consumer instalment loans, overdrafts, and other revolving credit loans and educational loans; and loans to municipalities and development authorities. Further, it provides trust and money management services. The company was incorporated in 1995 and is based in Thomasville, Georgia.

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.