Commerce Bancshares, Inc. (CBSH) vs Valley National Bancorp (VLY)

Commerce Bancshares, Inc. and Valley National Bancorp are both Banks Regional companies. Commerce Bancshares, Inc. is the larger, with a market value of $8.0B against $7.1B — 1.1× the size. Valley National Bancorp trades at the lower P/E: 10.6× against 13.5×. Commerce Bancshares, Inc. grew revenue faster over the last twelve months: 7.57% against 1.16%. Commerce Bancshares, Inc. has the higher net margin (25.7% vs 18.7%) and the higher return on invested capital (162.2% vs 5.61%). Both pay a dividend; Valley National Bancorp yields more (3.47% vs 1.95%). Across the 19 metrics below, Commerce Bancshares, Inc. leads on 11 and Valley National Bancorp on 8.

Valuation

Metric CBSH VLY Banks Regional median
P/E 13.48 10.57 11.98
P/S 3.53 1.97 2.34
P/B 1.83 0.93 1.19
Price to free cash flow 6.61 12.55 10.63
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.42% 9.46% 8.23%
Free cash flow yield 15.14% 7.97% 9.08%

Profitability

Metric CBSH VLY Banks Regional median
Gross margin 83.55% 60.51% 69.55%
Operating margin 0.00% 0.00% 0.00%
Net margin 25.66% 18.66% 18.66%
Free cash flow margin 53.47% 15.72% 21.11%
Return on equity 14.51% 8.98% 10.65%
Return on assets 1.73% 1.03% 1.13%
Return on invested capital 162.18% 5.61% 8.35%

Growth

Metric CBSH VLY Banks Regional median
Revenue growth (TTM) 7.57% 1.16% 6.98%
EPS growth (last fiscal year) 4.39% 46.38% 18.88%
Revenue growth, 5-year CAGR 9.02% 17.40% 12.38%
Net income growth, 5-year CAGR 10.60% 8.53% 9.71%

Health

Metric CBSH VLY Banks Regional median
Debt to equity 0.01 0.34 0.22
Current ratio 0.82 0.96 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CBSH VLY Banks Regional median
Dividend yield 1.95% 3.47% 2.57%
Payout ratio 0.26 0.37 0.30

Size

Metric CBSH VLY Banks Regional median
Market cap 7.97b 7.05b 913.33m

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