Arrow Financial Corporation (AROW) vs California BanCorp (BCAL)

Arrow Financial Corporation and California BanCorp are both Banks Regional companies. Arrow Financial Corporation and California BanCorp are of similar size ($694.1M and $691.5M). California BanCorp trades at the lower P/E: 11.6× against 12.1×. Arrow Financial Corporation grew revenue faster over the last twelve months: 8.43% against −2.30%. California BanCorp has the higher net margin (26.0% vs 20.6%) and the higher return on invested capital (16.2% vs 14.2%). Across the 19 metrics below, California BanCorp leads on 15 and Arrow Financial Corporation on 4.

Valuation

Metric AROW BCAL Banks Regional median
P/E 12.15 11.63 12.15
P/S 2.48 3.01 2.37
P/B 1.39 1.19 1.21
Price to free cash flow 12.96 11.74 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.83 1.86 2.27
Earnings yield 8.23% 8.60% 8.11%
Free cash flow yield 7.71% 8.52% 8.98%

Profitability

Metric AROW BCAL Banks Regional median
Gross margin 70.23% 77.87% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.56% 26.01% 18.66%
Free cash flow margin 19.12% 25.61% 21.18%
Return on equity 12.00% 10.61% 10.64%
Return on assets 1.15% 1.51% 1.13%
Return on invested capital 14.20% 16.15% 8.33%

Growth

Metric AROW BCAL Banks Regional median
Revenue growth (TTM) 8.43% (2.30%) 6.61%
EPS growth (last fiscal year) 49.72% 777.27% —
Revenue growth, 5-year CAGR 10.91% 37.44% 12.30%
Net income growth, 5-year CAGR 1.49% 67.92% 9.71%

Health

Metric AROW BCAL Banks Regional median
Debt to equity 0.06 0.00 0.22
Current ratio 0.92 0.99 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric AROW BCAL Banks Regional median
Dividend yield 4.47% — 3.75%
Payout ratio 0.46 — 0.27

Size

Metric AROW BCAL Banks Regional median
Market cap 691.49m 694.13m 921.07m

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