Columbia Banking System, Inc. (COLB) vs Prosperity Bancshares, Inc. (PB)

Columbia Banking System, Inc. and Prosperity Bancshares, Inc. are both Banks Regional companies. Columbia Banking System, Inc. and Prosperity Bancshares, Inc. are of similar size ($8.3B and $8.2B). Prosperity Bancshares, Inc. trades at the lower P/E: 11.7× against 11.8×. Columbia Banking System, Inc. grew revenue faster over the last twelve months: 21.2% against 5.48%. Prosperity Bancshares, Inc. has the higher net margin (30.0% vs 20.0%) and the lower return on invested capital (7.14% vs 11.8%). Both pay a dividend; Columbia Banking System, Inc. yields more (7.69% vs 3.63%). Across the 20 metrics below, Columbia Banking System, Inc. leads on 13 and Prosperity Bancshares, Inc. on 7.

Valuation

Metric COLB PB Banks Regional median
P/E 11.81 11.75 12.15
P/S 2.38 3.64 2.37
P/B 1.12 0.82 1.21
Price to free cash flow 6.70 11.23 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.16 2.78 2.27
Earnings yield 8.47% 8.51% 8.11%
Free cash flow yield 14.93% 8.90% 8.98%

Profitability

Metric COLB PB Banks Regional median
Gross margin 74.48% 74.11% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 19.96% 29.95% 18.66%
Free cash flow margin 35.49% 32.39% 21.18%
Return on equity 11.03% 7.07% 10.64%
Return on assets 1.21% 1.37% 1.13%
Return on invested capital 11.78% 7.14% 8.33%

Growth

Metric COLB PB Banks Regional median
Revenue growth (TTM) 21.15% 5.48% 6.61%
EPS growth (last fiscal year) (9.80%) 13.27% —
Revenue growth, 5-year CAGR 38.87% 6.39% 12.30%
Net income growth, 5-year CAGR 28.95% 0.52% 9.71%

Health

Metric COLB PB Banks Regional median
Debt to equity 0.00 0.01 0.22
Current ratio 0.85 0.75 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric COLB PB Banks Regional median
Dividend yield 7.69% 3.63% 3.75%
Payout ratio 0.00 0.41 0.27

Size

Metric COLB PB Banks Regional median
Market cap 8.26b 8.18b 921.07m

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