Arrow Financial Corporation (AROW) vs Community West Bancshares (CWBC)

Arrow Financial Corporation and Community West Bancshares are both Banks Regional companies. Arrow Financial Corporation and Community West Bancshares are of similar size ($722.9M and $691.5M). Arrow Financial Corporation trades at the lower P/E: 12.1× against 14.4×. Community West Bancshares grew revenue faster over the last twelve months: 12.9% against 8.43%. Arrow Financial Corporation has the higher net margin (20.6% vs 16.9%) and the higher return on invested capital (14.2% vs 6.83%). Both pay a dividend; Arrow Financial Corporation yields more (4.47% vs 2.77%). Across the 20 metrics below, Arrow Financial Corporation leads on 13 and Community West Bancshares on 7.

Valuation

Metric AROW CWBC Banks Regional median
P/E 12.15 14.39 12.15
P/S 2.48 3.37 2.37
P/B 1.39 1.19 1.21
Price to free cash flow 12.96 15.01 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.83 2.76 2.27
Earnings yield 8.23% 6.95% 8.11%
Free cash flow yield 7.71% 6.66% 8.98%

Profitability

Metric AROW CWBC Banks Regional median
Gross margin 70.23% 76.29% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.56% 16.86% 18.66%
Free cash flow margin 19.12% 22.46% 21.18%
Return on equity 12.00% 7.33% 10.64%
Return on assets 1.15% 0.84% 1.13%
Return on invested capital 14.20% 6.83% 8.33%

Growth

Metric AROW CWBC Banks Regional median
Revenue growth (TTM) 8.43% 12.91% 6.61%
EPS growth (last fiscal year) 49.72% 344.44% —
Revenue growth, 5-year CAGR 10.91% 19.71% 12.30%
Net income growth, 5-year CAGR 1.49% 13.41% 9.71%

Health

Metric AROW CWBC Banks Regional median
Debt to equity 0.06 0.12 0.22
Current ratio 0.92 0.89 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric AROW CWBC Banks Regional median
Dividend yield 4.47% 2.77% 3.75%
Payout ratio 0.46 0.21 0.27

Size

Metric AROW CWBC Banks Regional median
Market cap 691.49m 722.94m 921.07m

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