Beacon Financial Corporation (BBT) vs Merchants Bancorp (MBIN)

Beacon Financial Corporation and Merchants Bancorp are both Banks Regional companies. Beacon Financial Corporation and Merchants Bancorp are of similar size ($2.4B and $2.4B). Merchants Bancorp trades at the lower P/E: 10.5× against 15.4×. Beacon Financial Corporation grew revenue faster over the last twelve months: 76.4% against −3.25%. Merchants Bancorp has the higher net margin (16.9% vs 13.3%) and the lower return on invested capital (3.17% vs 8.28%). Both pay a dividend; Beacon Financial Corporation yields more (3.22% vs 0.92%). Across the 19 metrics below, Beacon Financial Corporation leads on 10 and Merchants Bancorp on 9.

Valuation

Metric BBT MBIN Banks Regional median
P/E 15.44 10.46 12.15
P/S 1.97 1.76 2.37
P/B 0.93 1.30 1.21
Price to free cash flow 10.95 n/m 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.70 4.69 2.27
Earnings yield 6.48% 9.56% 8.11%
Free cash flow yield 9.14% (32.58%) 8.98%

Profitability

Metric BBT MBIN Banks Regional median
Gross margin 66.78% 52.63% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 13.32% 16.86% 18.66%
Free cash flow margin 18.00% (57.50%) 21.18%
Return on equity 8.49% 13.16% 10.64%
Return on assets 0.93% 1.13% 1.13%
Return on invested capital 8.28% 3.17% 8.33%

Growth

Metric BBT MBIN Banks Regional median
Revenue growth (TTM) 76.38% (3.25%) 6.61%
EPS growth (last fiscal year) 33.85% (40.00%) —
Revenue growth, 5-year CAGR 13.14% 27.18% 12.30%
Net income growth, 5-year CAGR 0.00% 0.89% 9.71%

Health

Metric BBT MBIN Banks Regional median
Debt to equity 0.35 1.79 0.22
Current ratio 1.00 1.21 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric BBT MBIN Banks Regional median
Dividend yield 3.22% 0.92% 3.75%
Payout ratio 0.29 0.06 0.27

Size

Metric BBT MBIN Banks Regional median
Market cap 2.35b 2.40b 921.07m

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