Financial Comparison: Customers Bancorp (NYSE:CUBI) and MetroCity Bankshares (NASDAQ:MCBS)

Customers Bancorp (NYSE:CUBI) and MetroCity Bankshares (NASDAQ:MCBS) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Customers Bancorp and MetroCity Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Customers Bancorp	0	6	5	0	2.45
MetroCity Bankshares	0	2	0	0	2.00

Customers Bancorp currently has a consensus target price of $83.67, indicating a potential upside of 14.16%. MetroCity Bankshares has a consensus target price of $31.00, indicating a potential upside of 16.37%. Given MetroCity Bankshares’ higher possible upside, analysts plainly believe MetroCity Bankshares is more favorable than Customers Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Customers Bancorp	12.43%	13.24%	1.05%
MetroCity Bankshares	28.25%	15.39%	1.84%

Valuation & Earnings

This table compares Customers Bancorp and MetroCity Bankshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Customers Bancorp	$719.93 million	3.48	$181.47 million	$4.93	14.87
MetroCity Bankshares	$145.73 million	4.66	$64.50 million	$2.58	10.33

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

Risk & Volatility

Customers Bancorp has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Institutional & Insider Ownership

89.3% of Customers Bancorp shares are held by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are held by institutional investors. 6.9% of Customers Bancorp shares are held by company insiders. Comparatively, 27.5% of MetroCity Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Customers Bancorp beats MetroCity Bankshares on 8 of the 14 factors compared between the two stocks.

About Customers Bancorp

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses. The company provides deposit banking products, which includes commercial and consumer checking, non-interest-bearing and interest-bearing demand, MMDA, savings, and time deposit accounts. Its lending business offers commercial and industrial, commercial real estate, and multifamily and residential mortgage loans; SBA lending and financing; specialty lending includes fund finance, real estate specialty finance, technology and venture, and healthcare and financial institutions group; commercial loans to mortgage companies, and commercial equipment financing; and fund finance, such as variable rate loans secured by collateral pools to private debt funds; and cash management services. In addition, the company provides digital banking including Banking-as-a-Service to fintech companies, payments and treasury services to businesses, and consumer loans through fintech companies and the TassatPay, a blockchain-based instant B2B payments platform which offers instant payments including over-the-counter desks, exchanges, liquidity providers, market makers, funds, and other B2B verticals. Further, it offers mobile phone and internet banking, wire transfers, electronic bill payment, lock box, remote deposit capture, courier, merchant processing, cash vault, controlled disbursements, positive pay, and cash management services, such as account reconciliation, collections, and sweep accounts. The company was incorporated in 2010 and is headquartered in West Reading, Pennsylvania.

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.