Business First Bancshares, Inc. (BFST) vs Heritage Financial Corporation (HFWA)

Business First Bancshares, Inc. and Heritage Financial Corporation are both Banks Regional companies. Heritage Financial Corporation is the larger, with a market value of $1.1B against $1.0B — 1.1× the size. Business First Bancshares, Inc. trades at the lower P/E: 11.1× against 12.9×. Heritage Financial Corporation grew revenue faster over the last twelve months: 17.2% against 7.80%. Heritage Financial Corporation has the higher net margin (20.4% vs 16.3%) and the lower return on invested capital (5.20% vs 8.41%). Both pay a dividend; Heritage Financial Corporation yields more (3.52% vs 1.92%). Across the 19 metrics below, Business First Bancshares, Inc. leads on 11 and Heritage Financial Corporation on 8.

Valuation

Metric BFST HFWA Banks Regional median
P/E 11.10 12.93 11.98
P/S 1.90 2.97 2.34
P/B 1.09 1.02 1.19
Price to free cash flow 9.88 14.07 10.63
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.01% 7.73% 8.23%
Free cash flow yield 10.12% 7.11% 9.08%

Profitability

Metric BFST HFWA Banks Regional median
Gross margin 64.32% 77.18% 69.55%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.32% 20.44% 18.66%
Free cash flow margin 19.24% 21.11% 21.11%
Return on equity 10.22% 7.80% 10.65%
Return on assets 1.04% 1.01% 1.13%
Return on invested capital 8.41% 5.20% 8.35%

Growth

Metric BFST HFWA Banks Regional median
Revenue growth (TTM) 7.80% 17.17% 6.98%
EPS growth (last fiscal year) 23.45% 58.06% 18.88%
Revenue growth, 5-year CAGR 24.70% 5.96% 12.38%
Net income growth, 5-year CAGR 22.42% 7.72% 9.71%

Health

Metric BFST HFWA Banks Regional median
Debt to equity 0.56 0.17 0.22
Current ratio 1.01 0.83 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric BFST HFWA Banks Regional median
Dividend yield 1.92% 3.52% 2.57%
Payout ratio 0.21 0.46 0.30

Size

Metric BFST HFWA Banks Regional median
Market cap 1.01b 1.12b 913.33m

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