Eagle Bancorp (NASDAQ:EGBN) & MetroCity Bankshares (NASDAQ:MCBS) Financial Survey

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

Profitability

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

Net Margins Return on Equity Return on Assets
Eagle Bancorp 32.62% 13.24% 1.78%
MetroCity Bankshares N/A N/A N/A

Institutional and Insider Ownership

70.7% of Eagle Bancorp shares are owned by institutional investors. 3.3% of Eagle Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Eagle Bancorp and MetroCity Bankshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eagle Bancorp $415.87 million 3.79 $152.28 million $4.42 10.31
MetroCity Bankshares N/A N/A N/A N/A N/A

Eagle Bancorp has higher revenue and earnings than MetroCity Bankshares.

Dividends

Eagle Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 1.9%. MetroCity Bankshares pays an annual dividend of $0.44 per share and has a dividend yield of 2.7%. Eagle Bancorp pays out 19.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings for Eagle Bancorp and MetroCity Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Bancorp 0 6 1 0 2.14
MetroCity Bankshares 0 0 3 0 3.00

Eagle Bancorp presently has a consensus target price of $52.75, suggesting a potential upside of 15.73%. MetroCity Bankshares has a consensus target price of $16.83, suggesting a potential upside of 2.08%. Given Eagle Bancorp’s higher possible upside, equities research analysts plainly believe Eagle Bancorp is more favorable than MetroCity Bankshares.

Summary

Eagle Bancorp beats MetroCity Bankshares on 7 of the 11 factors compared between the two stocks.

Eagle Bancorp Company Profile

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. It accepts business and personal checking, NOW, tiered savings, and money market accounts, as well as individual retirement and investment sweep accounts; and time deposits. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; residential mortgage loans; and real estate secured loans. In addition, it provides online and mobile banking services; other services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, it provides commercial and retail insurance products through a referral arrangement. The company serves sole proprietorships, small and medium-sized businesses, partnerships, corporations, non-profit organizations, associations, and individuals, as well as investors. It operates 20 banking offices comprising 6 in Suburban Maryland, 5 in the District of Columbia, and 9 in Northern Virginia. Eagle Bancorp, Inc. was founded in 1997 and is headquartered in Bethesda, Maryland.

MetroCity Bankshares Company Profile

MetroCity Bankshares, Inc. operates as the holding company for Metro City Bank that offers banking products and services in Georgia, The United States. The company offers checking accounts, savings accounts, certificates of deposit, commercial and consumer loans, money transfers, and other banking services. It operates through branches located in Duluth, Johns Creek, Suwanee and Norcross, Georgia; Opelika and Montgomery, Alabama; Centreville, Virginia; Grand Prairie and Dallas, Texas; Fort Lee, New Jersey; and Bayside, New York. The company was founded in 2006 and is based in Doraville, Georgia.

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