Cathay General Bancorp (CATY) vs Independent Bank Corp. (INDB)

Cathay General Bancorp and Independent Bank Corp. are both Banks Regional companies. Cathay General Bancorp and Independent Bank Corp. are of similar size ($4.1B and $3.8B). Cathay General Bancorp trades at the lower P/E: 11.9× against 14.7×. Independent Bank Corp. grew revenue faster over the last twelve months: 34.2% against 2.47%. Cathay General Bancorp has the higher net margin (24.7% vs 20.3%) and the higher return on invested capital (14.8% vs 7.59%). Both pay a dividend; Independent Bank Corp. yields more (4.27% vs 3.52%). Across the 20 metrics below, Cathay General Bancorp leads on 13 and Independent Bank Corp. on 7.

Valuation

Metric CATY INDB Banks Regional median
P/E 11.93 14.68 12.15
P/S 2.92 2.92 2.37
P/B 1.35 1.11 1.21
Price to free cash flow 7.71 12.85 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.07 2.70 2.27
Earnings yield 8.38% 6.81% 8.11%
Free cash flow yield 12.97% 7.78% 8.98%

Profitability

Metric CATY INDB Banks Regional median
Gross margin 61.82% 75.11% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 24.66% 20.31% 18.66%
Free cash flow margin 37.94% 22.76% 21.18%
Return on equity 11.71% 8.24% 10.64%
Return on assets 1.44% 1.21% 1.13%
Return on invested capital 14.82% 7.59% 8.33%

Growth

Metric CATY INDB Banks Regional median
Revenue growth (TTM) 2.47% 34.23% 6.61%
EPS growth (last fiscal year) 14.94% (1.77%) —
Revenue growth, 5-year CAGR 13.25% 17.93% 12.30%
Net income growth, 5-year CAGR 6.61% 11.10% 9.71%

Health

Metric CATY INDB Banks Regional median
Debt to equity 0.04 0.20 0.22
Current ratio 1.04 0.94 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CATY INDB Banks Regional median
Dividend yield 3.52% 4.27% 3.75%
Payout ratio 0.26 0.36 0.27

Size

Metric CATY INDB Banks Regional median
Market cap 4.08b 3.80b 921.07m

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