Eagle Financial Services Inc. (EFSI) vs Meridian Bank (MRBK)

Eagle Financial Services Inc. and Meridian Bank are both Banks Regional companies. Eagle Financial Services Inc. and Meridian Bank are of similar size ($245.7M and $228.3M). Meridian Bank trades at the lower P/E: 10.3× against 13.2×. Eagle Financial Services Inc. grew revenue faster over the last twelve months: 15.8% against 0.72%. Eagle Financial Services Inc. has the higher net margin (15.2% vs 10.6%) and the higher return on invested capital (18.6% vs 8.03%). Across the 19 metrics below, Eagle Financial Services Inc. leads on 10 and Meridian Bank on 9.

Valuation

Metric EFSI MRBK Banks Regional median
P/E 13.21 10.31 12.15
P/S 2.01 1.12 2.37
P/B 1.28 1.12 1.21
Price to free cash flow 17.35 12.25 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.08 1.18 2.27
Earnings yield 7.57% 9.70% 8.11%
Free cash flow yield 5.76% 8.17% 8.98%

Profitability

Metric EFSI MRBK Banks Regional median
Gross margin 73.61% 63.55% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 15.16% 10.57% 18.66%
Free cash flow margin 11.60% 9.11% 21.18%
Return on equity 9.98% 11.31% 10.64%
Return on assets 0.96% 0.85% 1.13%
Return on invested capital 18.55% 8.03% 8.33%

Growth

Metric EFSI MRBK Banks Regional median
Revenue growth (TTM) 15.82% 0.72% 6.61%
EPS growth (last fiscal year) (63.19%) 30.34% —
Revenue growth, 5-year CAGR 17.40% 6.56% 12.30%
Net income growth, 5-year CAGR (5.97%) (3.75%) 9.71%

Health

Metric EFSI MRBK Banks Regional median
Debt to equity 0.15 0.24 0.22
Current ratio 1.02 0.98 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric EFSI MRBK Banks Regional median
Dividend yield — 5.06% 3.75%
Payout ratio — 0.28 0.27

Size

Metric EFSI MRBK Banks Regional median
Market cap 245.69m 228.32m 921.07m

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