Commerce Bancshares, Inc. (CBSH) vs Prosperity Bancshares, Inc. (PB)

Commerce Bancshares, Inc. and Prosperity Bancshares, Inc. are both Banks Regional companies. Commerce Bancshares, Inc. and Prosperity Bancshares, Inc. are of similar size ($8.2B and $8.0B). Prosperity Bancshares, Inc. trades at the lower P/E: 11.7× against 13.7×. Commerce Bancshares, Inc. grew revenue faster over the last twelve months: 7.57% against 5.48%. Prosperity Bancshares, Inc. has the higher net margin (30.0% vs 25.7%) and the lower return on invested capital (7.14% vs 162.2%). Both pay a dividend; Prosperity Bancshares, Inc. yields more (3.63% vs 2.24%). Across the 20 metrics below, Commerce Bancshares, Inc. leads on 14 and Prosperity Bancshares, Inc. on 6.

Valuation

Metric CBSH PB Banks Regional median
P/E 13.66 11.75 12.15
P/S 3.58 3.64 2.37
P/B 1.86 0.82 1.21
Price to free cash flow 6.69 11.23 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.78 2.78 2.27
Earnings yield 7.32% 8.51% 8.11%
Free cash flow yield 14.95% 8.90% 8.98%

Profitability

Metric CBSH PB Banks Regional median
Gross margin 83.55% 74.11% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 25.66% 29.95% 18.66%
Free cash flow margin 53.47% 32.39% 21.18%
Return on equity 14.51% 7.07% 10.64%
Return on assets 1.73% 1.37% 1.13%
Return on invested capital 162.18% 7.14% 8.33%

Growth

Metric CBSH PB Banks Regional median
Revenue growth (TTM) 7.57% 5.48% 6.61%
EPS growth (last fiscal year) 4.39% 13.27% —
Revenue growth, 5-year CAGR 9.02% 6.39% 12.30%
Net income growth, 5-year CAGR 10.60% 0.52% 9.71%

Health

Metric CBSH PB Banks Regional median
Debt to equity 0.01 0.01 0.22
Current ratio 0.82 0.75 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CBSH PB Banks Regional median
Dividend yield 2.24% 3.63% 3.75%
Payout ratio 0.27 0.41 0.27

Size

Metric CBSH PB Banks Regional median
Market cap 8.00b 8.18b 921.07m

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