Business First Bancshares, Inc. (BFST) vs Mercantile Bank Corporation (MBWM)

Business First Bancshares, Inc. and Mercantile Bank Corporation are both Banks Regional companies. Business First Bancshares, Inc. and Mercantile Bank Corporation are of similar size ($1.0B and $1.0B). Mercantile Bank Corporation trades at the lower P/E: 10.8× against 11.3×. Business First Bancshares, Inc. grew revenue faster over the last twelve months: 6.15% against 5.40%. Mercantile Bank Corporation has the higher net margin (24.4% vs 16.3%) and the lower return on invested capital (12.9% vs 16.8%). Both pay a dividend; Mercantile Bank Corporation yields more (2.59% vs 1.86%). Across the 19 metrics below, Business First Bancshares, Inc. leads on 11 and Mercantile Bank Corporation on 8.

Valuation

Metric BFST MBWM Banks Regional median
P/E 11.34 10.76 12.02
P/S 1.92 2.67 2.36
P/B 1.13 1.40 1.23
Price to free cash flow 9.07 11.19 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.82% 9.30% 8.21%
Free cash flow yield 11.03% 8.94% 9.23%

Profitability

Metric BFST MBWM Banks Regional median
Gross margin 65.42% 69.43% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.34% 24.42% 18.82%
Free cash flow margin 21.17% 23.84% 17.97%
Return on equity 10.28% 13.63% 10.28%
Return on assets 1.06% 1.42% 1.13%
Return on invested capital 16.84% 12.92% 8.45%

Growth

Metric BFST MBWM Banks Regional median
Revenue growth (TTM) 6.15% 5.40% 6.37%
EPS growth (last fiscal year) 23.45% 10.95% 18.85%
Revenue growth, 5-year CAGR 24.70% 13.95% 12.65%
Net income growth, 5-year CAGR 22.42% 14.99% 9.81%

Health

Metric BFST MBWM Banks Regional median
Debt to equity 0.12 0.60 0.17
Current ratio 0.96 0.93 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric BFST MBWM Banks Regional median
Dividend yield 1.86% 2.59% 2.49%
Payout ratio 0.21 0.28 0.29

Size

Metric BFST MBWM Banks Regional median
Market cap 1.04b 1.04b 934.85m

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