Alerus Financial (ALRS) vs Shore Bancshares Inc (SHBI)

Alerus Financial and Shore Bancshares Inc are both Banks Regional companies. Alerus Financial and Shore Bancshares Inc are of similar size ($802.9M and $764.9M). Shore Bancshares Inc trades at the lower P/E: 11.6× against 29.8×. Shore Bancshares Inc grew revenue faster over the last twelve months: 2.79% against −11.8%. Shore Bancshares Inc has the higher net margin (19.2% vs 8.25%) and the higher return on invested capital (12.2% vs 4.25%). Both pay a dividend; Shore Bancshares Inc yields more (4.34% vs 3.48%). Across the 20 metrics below, Shore Bancshares Inc leads on 17 and Alerus Financial on 3.

Valuation

Metric ALRS SHBI Banks Regional median
P/E 29.79 11.62 12.15
P/S 2.41 2.23 2.37
P/B 1.38 1.25 1.21
Price to free cash flow 9.03 8.91 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.26 1.74 2.27
Earnings yield 3.36% 8.60% 8.11%
Free cash flow yield 11.07% 11.22% 8.98%

Profitability

Metric ALRS SHBI Banks Regional median
Gross margin 70.83% 68.57% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 8.25% 19.15% 18.66%
Free cash flow margin 26.67% 24.99% 21.18%
Return on equity 4.95% 11.21% 10.64%
Return on assets 0.52% 1.09% 1.13%
Return on invested capital 4.25% 12.23% 8.33%

Growth

Metric ALRS SHBI Banks Regional median
Revenue growth (TTM) (11.81%) 2.79% 6.61%
EPS growth (last fiscal year) (30.61%) 34.85% —
Revenue growth, 5-year CAGR 6.19% 37.23% 12.30%
Net income growth, 5-year CAGR (16.83%) 30.49% 9.71%

Health

Metric ALRS SHBI Banks Regional median
Debt to equity 0.10 0.14 0.22
Current ratio 0.90 0.95 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric ALRS SHBI Banks Regional median
Dividend yield 3.48% 4.34% 3.75%
Payout ratio 0.39 0.33 0.27

Size

Metric ALRS SHBI Banks Regional median
Market cap 802.92m 764.89m 921.07m

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