CPB Inc. (CPF) vs Mercantile Bank Corporation (MBWM)

CPB Inc. and Mercantile Bank Corporation are both Banks Regional companies. CPB Inc. and Mercantile Bank Corporation are of similar size ($1.0B and $977.8M). Mercantile Bank Corporation trades at the lower P/E: 10.8× against 11.5×. Mercantile Bank Corporation grew revenue faster over the last twelve months: 5.40% against 4.12%. Mercantile Bank Corporation has the higher net margin (24.4% vs 23.7%) and the lower return on invested capital (12.9% vs 23.5%). Both pay a dividend; CPB Inc. yields more (3.01% vs 2.59%). Across the 19 metrics below, CPB Inc. leads on 10 and Mercantile Bank Corporation on 9.

Valuation

Metric CPF MBWM Banks Regional median
P/E 11.52 10.76 12.02
P/S 2.68 2.67 2.36
P/B 1.70 1.40 1.23
Price to free cash flow 9.44 11.19 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.68% 9.30% 8.21%
Free cash flow yield 10.59% 8.94% 9.23%

Profitability

Metric CPF MBWM Banks Regional median
Gross margin 82.46% 69.43% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 23.69% 24.42% 18.82%
Free cash flow margin 28.43% 23.84% 17.97%
Return on equity 14.91% 13.63% 10.28%
Return on assets 1.17% 1.42% 1.13%
Return on invested capital 23.48% 12.92% 8.45%

Growth

Metric CPF MBWM Banks Regional median
Revenue growth (TTM) 4.12% 5.40% 6.37%
EPS growth (last fiscal year) 45.18% 10.95% 18.85%
Revenue growth, 5-year CAGR 7.27% 13.95% 12.65%
Net income growth, 5-year CAGR 15.76% 14.99% 9.81%

Health

Metric CPF MBWM Banks Regional median
Debt to equity 0.13 0.60 0.17
Current ratio 0.85 0.93 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric CPF MBWM Banks Regional median
Dividend yield 3.01% 2.59% 2.49%
Payout ratio 0.35 0.28 0.29

Size

Metric CPF MBWM Banks Regional median
Market cap 977.80m 1.04b 934.85m

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