Arrow Financial Corporation (AROW) vs Coastal Financial Corporation (CCB)

Arrow Financial Corporation and Coastal Financial Corporation are both Banks Regional companies. Arrow Financial Corporation and Coastal Financial Corporation are of similar size ($691.5M and $669.7M). Coastal Financial Corporation has negative trailing earnings, so its P/E is not meaningful; Arrow Financial Corporation trades at 12.1×. Arrow Financial Corporation grew revenue faster over the last twelve months: 8.43% against 7.06%. Arrow Financial Corporation has the higher net margin (20.6% vs −0.53%) and the higher return on invested capital (14.2% vs 0.00%). Across the 18 metrics below, Arrow Financial Corporation leads on 9 and Coastal Financial Corporation on 9.

Valuation

Metric AROW CCB Banks Regional median
P/E 12.15 n/m 12.15
P/S 2.48 0.94 2.37
P/B 1.39 1.47 1.21
Price to free cash flow 12.96 2.63 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.83 (0.38) 2.27
Earnings yield 8.23% (0.51%) 8.11%
Free cash flow yield 7.71% 38.01% 8.98%

Profitability

Metric AROW CCB Banks Regional median
Gross margin 70.23% 83.89% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.56% (0.53%) 18.66%
Free cash flow margin 19.12% 35.70% 21.18%
Return on equity 12.00% (0.83%) 10.64%
Return on assets 1.15% (0.08%) 1.13%
Return on invested capital 14.20% 0.00% 8.33%

Growth

Metric AROW CCB Banks Regional median
Revenue growth (TTM) 8.43% 7.06% 6.61%
EPS growth (last fiscal year) 49.72% (4.31%) —
Revenue growth, 5-year CAGR 10.91% 56.15% 12.30%
Net income growth, 5-year CAGR 1.49% 25.41% 9.71%

Health

Metric AROW CCB Banks Regional median
Debt to equity 0.06 0.10 0.22
Current ratio 0.92 1.06 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric AROW CCB Banks Regional median
Dividend yield 4.47% — 3.75%
Payout ratio 0.46 0.00 0.27

Size

Metric AROW CCB Banks Regional median
Market cap 691.49m 669.67m 921.07m

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