Carter Bankshares, Inc. (CARE) vs Coastal Financial Corporation (CCB)

Carter Bankshares, Inc. and Coastal Financial Corporation are both Banks Regional companies. Carter Bankshares, Inc. and Coastal Financial Corporation are of similar size ($669.7M and $666.5M). Coastal Financial Corporation has negative trailing earnings, so its P/E is not meaningful; Carter Bankshares, Inc. trades at 5.2×. Carter Bankshares, Inc. grew revenue faster over the last twelve months: 40.1% against 7.06%. Carter Bankshares, Inc. has the higher net margin (36.6% vs −0.53%) and the higher return on invested capital (39.4% vs 0.00%). Across the 18 metrics below, Carter Bankshares, Inc. leads on 9 and Coastal Financial Corporation on 9.

Valuation

Metric CARE CCB Banks Regional median
P/E 5.22 n/m 12.15
P/S 1.89 0.94 2.37
P/B 1.23 1.47 1.21
Price to free cash flow 11.27 2.63 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.61 (0.38) 2.27
Earnings yield 19.17% (0.51%) 8.11%
Free cash flow yield 8.88% 38.01% 8.98%

Profitability

Metric CARE CCB Banks Regional median
Gross margin 72.83% 83.89% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 36.60% (0.53%) 18.66%
Free cash flow margin 16.81% 35.70% 21.18%
Return on equity 27.08% (0.83%) 10.64%
Return on assets 2.67% (0.08%) 1.13%
Return on invested capital 39.39% 0.00% 8.33%

Growth

Metric CARE CCB Banks Regional median
Revenue growth (TTM) 40.09% 7.06% 6.61%
EPS growth (last fiscal year) 30.19% (4.31%) —
Revenue growth, 5-year CAGR 8.73% 56.15% 12.30%
Net income growth, 5-year CAGR 0.00% 25.41% 9.71%

Health

Metric CARE CCB Banks Regional median
Debt to equity 0.00 0.10 0.22
Current ratio 0.94 1.06 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CARE CCB Banks Regional median
Dividend yield 2.58% — 3.75%
Payout ratio 0.00 0.00 0.27

Size

Metric CARE CCB Banks Regional median
Market cap 666.47m 669.67m 921.07m

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