Financial Survey: First National Bank Alaska (OTCMKTS:FBAK) versus MetroCity Bankshares (NASDAQ:MCBS)

MetroCity Bankshares (NASDAQ:MCBSGet Rating) and First National Bank Alaska (OTCMKTS:FBAKGet Rating) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Insider and Institutional Ownership

16.7% of MetroCity Bankshares shares are held by institutional investors. Comparatively, 0.9% of First National Bank Alaska shares are held by institutional investors. 27.3% of MetroCity Bankshares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares MetroCity Bankshares and First National Bank Alaska’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MetroCity Bankshares 39.41% 20.03% 2.04%
First National Bank Alaska N/A 10.86% 1.08%

Earnings & Valuation

This table compares MetroCity Bankshares and First National Bank Alaska’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MetroCity Bankshares $166.42 million 3.01 $61.70 million $2.73 7.25
First National Bank Alaska $174.22 million 4.25 $58.41 million $19.01 12.29

MetroCity Bankshares has higher earnings, but lower revenue than First National Bank Alaska. MetroCity Bankshares is trading at a lower price-to-earnings ratio than First National Bank Alaska, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for MetroCity Bankshares and First National Bank Alaska, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MetroCity Bankshares 0 0 0 0 N/A
First National Bank Alaska 0 0 0 0 N/A

Dividends

MetroCity Bankshares pays an annual dividend of $0.60 per share and has a dividend yield of 3.0%. First National Bank Alaska pays an annual dividend of $12.80 per share and has a dividend yield of 5.5%. MetroCity Bankshares pays out 22.0% of its earnings in the form of a dividend. First National Bank Alaska pays out 67.3% 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. MetroCity Bankshares has increased its dividend for 2 consecutive years.

Risk and Volatility

MetroCity Bankshares has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, First National Bank Alaska has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Summary

MetroCity Bankshares beats First National Bank Alaska on 9 of the 14 factors compared between the two stocks.

About MetroCity Bankshares

(Get Rating)

MetroCity Bankshares, Inc. is a bank holding company, which engages in the provision of commercial bank services. The firm offers customary banking services as consumer and commercial checking accounts, savings accounts, certificates of deposit, commercial and consumer loans, single family residential loans, and money transfers services. Its portfolio includes construction and development, commercial real estate, commercial and industrial, single family residential mortgages, and consumer and other. The company was founded in 2014 and is headquartered in Doraville, GA.

About First National Bank Alaska

(Get Rating)

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits and safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides cash, trust, investment, and wealth management; bankcard; and escrow and contract collection, and merchant services. In addition, the company offers debit and credit cards, online and mobile banking, and convenience banking services. It operates through 27 branches. The company was founded in 1922 and is headquartered in Anchorage, Alaska.

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