Arrow Financial Corporation (AROW) vs Peoples Financial Services Corp. (PFIS)

Arrow Financial Corporation and Peoples Financial Services Corp. are both Banks Regional companies. Arrow Financial Corporation and Peoples Financial Services Corp. are of similar size ($693.7M and $691.5M). Arrow Financial Corporation trades at the lower P/E: 12.1× against 12.3×. Arrow Financial Corporation grew revenue faster over the last twelve months: 8.43% against 0.46%. Arrow Financial Corporation has the higher net margin (20.6% vs 19.8%) and the higher return on invested capital (14.2% vs 8.38%). Both pay a dividend; Peoples Financial Services Corp. yields more (5.64% vs 4.47%). Across the 20 metrics below, Arrow Financial Corporation leads on 13 and Peoples Financial Services Corp. on 7.

Valuation

Metric AROW PFIS Banks Regional median
P/E 12.15 12.30 12.15
P/S 2.48 2.43 2.37
P/B 1.39 1.30 1.21
Price to free cash flow 12.96 14.09 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.83 2.40 2.27
Earnings yield 8.23% 8.13% 8.11%
Free cash flow yield 7.71% 7.10% 8.98%

Profitability

Metric AROW PFIS Banks Regional median
Gross margin 70.23% 68.05% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.56% 19.78% 18.66%
Free cash flow margin 19.12% 17.28% 21.18%
Return on equity 12.00% 11.02% 10.64%
Return on assets 1.15% 1.08% 1.13%
Return on invested capital 14.20% 8.38% 8.33%

Growth

Metric AROW PFIS Banks Regional median
Revenue growth (TTM) 8.43% 0.46% 6.61%
EPS growth (last fiscal year) 49.72% 493.94% —
Revenue growth, 5-year CAGR 10.91% 20.50% 12.30%
Net income growth, 5-year CAGR 1.49% 15.06% 9.71%

Health

Metric AROW PFIS Banks Regional median
Debt to equity 0.06 0.46 0.22
Current ratio 0.92 0.99 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric AROW PFIS Banks Regional median
Dividend yield 4.47% 5.64% 3.75%
Payout ratio 0.46 0.32 0.27

Size

Metric AROW PFIS Banks Regional median
Market cap 691.49m 693.72m 921.07m

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