Pathward Financial, Inc. (CASH) vs Esquire Financial Holdings, Inc. (ESQ)

Pathward Financial, Inc. and Esquire Financial Holdings, Inc. are both Banks Regional companies. Pathward Financial, Inc. and Esquire Financial Holdings, Inc. are of similar size ($1.5B and $1.5B). Pathward Financial, Inc. trades at the lower P/E: 9.2× against 19.0×. Esquire Financial Holdings, Inc. grew revenue faster over the last twelve months: 20.0% against −1.26%. Esquire Financial Holdings, Inc. has the higher net margin (29.3% vs 21.0%) and the higher return on invested capital (61.2% vs 18.2%). Both pay a dividend; Esquire Financial Holdings, Inc. yields more (1.15% vs 0.40%). Across the 20 metrics below, Pathward Financial, Inc. leads on 12 and Esquire Financial Holdings, Inc. on 8.

Valuation

Metric CASH ESQ Banks Regional median
P/E 9.21 18.96 12.15
P/S 1.86 5.62 2.37
P/B 1.83 3.22 1.21
Price to free cash flow 2.31 15.73 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.72 4.29 2.27
Earnings yield 10.85% 5.27% 8.11%
Free cash flow yield 43.27% 6.36% 8.98%

Profitability

Metric CASH ESQ Banks Regional median
Gross margin 98.77% 88.70% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 21.00% 29.30% 18.66%
Free cash flow margin 80.46% 35.75% 21.18%
Return on equity 21.03% 18.26% 10.64%
Return on assets 2.41% 2.31% 1.13%
Return on invested capital 18.19% 61.15% 8.33%

Growth

Metric CASH ESQ Banks Regional median
Revenue growth (TTM) (1.26%) 19.99% 6.61%
EPS growth (last fiscal year) 18.88% 14.20% —
Revenue growth, 5-year CAGR 9.84% 25.29% 12.30%
Net income growth, 5-year CAGR 12.60% 32.13% 9.71%

Health

Metric CASH ESQ Banks Regional median
Debt to equity 0.04 0.00 0.22
Current ratio 0.82 0.97 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CASH ESQ Banks Regional median
Dividend yield 0.40% 1.15% 3.75%
Payout ratio 0.03 0.09 0.27

Size

Metric CASH ESQ Banks Regional median
Market cap 1.53b 1.49b 921.07m

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