Financial Contrast: MetroCity Bankshares (NASDAQ:MCBS) versus Carver Bancorp (NASDAQ:CARV)
by Tristan Rich · The Markets DailyCarver Bancorp (NASDAQ:CARV – Get Free Report) and MetroCity Bankshares (NASDAQ:MCBS – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Profitability
This table compares Carver Bancorp and MetroCity Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carver Bancorp | -34.89% | -171.55% | -1.82% |
| MetroCity Bankshares | 28.40% | 15.16% | 1.82% |
Risk and Volatility
Carver Bancorp has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
Valuation & Earnings
This table compares Carver 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 | |
| Carver Bancorp | $22.74 million | 0.47 | -$13.74 million | ($1.36) | -1.25 |
| MetroCity Bankshares | $180.14 million | 5.50 | $68.53 million | $2.88 | 11.94 |
MetroCity Bankshares has higher revenue and earnings than Carver Bancorp. Carver Bancorp is trading at a lower price-to-earnings ratio than MetroCity Bankshares, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for Carver Bancorp and MetroCity Bankshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carver Bancorp | 1 | 0 | 0 | 0 | 1.00 |
| MetroCity Bankshares | 0 | 1 | 1 | 0 | 2.50 |
MetroCity Bankshares has a consensus target price of $33.00, suggesting a potential downside of 4.07%. Given MetroCity Bankshares’ stronger consensus rating and higher possible upside, analysts plainly believe MetroCity Bankshares is more favorable than Carver Bancorp.
Institutional & Insider Ownership
18.2% of Carver Bancorp shares are owned by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are owned by institutional investors. 1.3% of Carver Bancorp shares are owned by company insiders. Comparatively, 20.2% of MetroCity Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
MetroCity Bankshares beats Carver Bancorp on 13 of the 14 factors compared between the two stocks.
About Carver Bancorp
Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company provides lending products, such as one-to-four family residential, multifamily real estate, and commercial real estate lending; and construction, business and small business administration, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.
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.