Community Financial System, Inc. (CBU) vs Towne Bank (TOWN)

Community Financial System, Inc. and Towne Bank are both Banks Regional companies. Community Financial System, Inc. and Towne Bank are of similar size ($3.4B and $3.2B). Towne Bank trades at the lower P/E: 10.2× against 14.3×. Towne Bank grew revenue faster over the last twelve months: 36.6% against 7.08%. Towne Bank has the higher net margin (22.3% vs 21.7%) and the higher return on invested capital (19.6% vs 7.88%). Both pay a dividend; Community Financial System, Inc. yields more (4.12% vs 3.78%). Across the 20 metrics below, Towne Bank leads on 12 and Community Financial System, Inc. on 8.

Valuation

Metric CBU TOWN Banks Regional median
P/E 14.29 10.16 12.15
P/S 3.10 2.34 2.37
P/B 1.56 1.12 1.21
Price to free cash flow 13.03 25.31 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.39 1.16 2.27
Earnings yield 7.00% 9.85% 8.11%
Free cash flow yield 7.67% 3.95% 8.98%

Profitability

Metric CBU TOWN Banks Regional median
Gross margin 82.07% 79.29% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 21.72% 22.33% 18.66%
Free cash flow margin 23.76% 9.26% 21.18%
Return on equity 11.49% 12.18% 10.64%
Return on assets 1.32% 1.56% 1.13%
Return on invested capital 7.88% 19.56% 8.33%

Growth

Metric CBU TOWN Banks Regional median
Revenue growth (TTM) 7.08% 36.61% 6.61%
EPS growth (last fiscal year) 15.41% 2.79% —
Revenue growth, 5-year CAGR 10.35% 8.48% 12.30%
Net income growth, 5-year CAGR 5.01% 3.10% 9.71%

Health

Metric CBU TOWN Banks Regional median
Debt to equity 0.29 0.04 0.22
Current ratio 0.77 0.90 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CBU TOWN Banks Regional median
Dividend yield 4.12% 3.78% 3.75%
Payout ratio 0.62 0.39 0.27

Size

Metric CBU TOWN Banks Regional median
Market cap 3.20b 3.36b 921.07m

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