Commerce Bancshares, Inc. (CBSH) vs Western Alliance Bancorporation (WAL)

Commerce Bancshares, Inc. and Western Alliance Bancorporation are both Banks Regional companies. Commerce Bancshares, Inc. and Western Alliance Bancorporation are of similar size ($8.3B and $8.0B). Western Alliance Bancorporation trades at the lower P/E: 8.7× against 13.7×. Western Alliance Bancorporation grew revenue faster over the last twelve months: 10.7% against 7.57%. Commerce Bancshares, Inc. has the higher net margin (25.7% vs 16.9%) and the higher return on invested capital (162.2% vs 8.11%). Both pay a dividend; Western Alliance Bancorporation yields more (2.50% vs 2.24%). Across the 19 metrics below, Western Alliance Bancorporation leads on 11 and Commerce Bancshares, Inc. on 8.

Valuation

Metric CBSH WAL Banks Regional median
P/E 13.66 8.70 12.15
P/S 3.58 1.46 2.37
P/B 1.86 1.07 1.21
Price to free cash flow 6.69 n/m 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.78 1.70 2.27
Earnings yield 7.32% 11.49% 8.11%
Free cash flow yield 14.95% (19.73%) 8.98%

Profitability

Metric CBSH WAL Banks Regional median
Gross margin 83.55% 68.81% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 25.66% 16.92% 18.66%
Free cash flow margin 53.47% (28.87%) 21.18%
Return on equity 14.51% 12.94% 10.64%
Return on assets 1.73% 1.04% 1.13%
Return on invested capital 162.18% 8.11% 8.33%

Growth

Metric CBSH WAL Banks Regional median
Revenue growth (TTM) 7.57% 10.74% 6.61%
EPS growth (last fiscal year) 4.39% 23.13% —
Revenue growth, 5-year CAGR 9.02% 32.15% 12.30%
Net income growth, 5-year CAGR 10.60% 13.55% 9.71%

Health

Metric CBSH WAL Banks Regional median
Debt to equity 0.01 0.90 0.22
Current ratio 0.82 0.86 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CBSH WAL Banks Regional median
Dividend yield 2.24% 2.50% 3.75%
Payout ratio 0.27 0.17 0.27

Size

Metric CBSH WAL Banks Regional median
Market cap 8.00b 8.32b 921.07m

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