Eagle Bancorp, Inc. (EGBN) vs Mercantile Bank Corporation (MBWM)

Eagle Bancorp, Inc. and Mercantile Bank Corporation are both Banks Regional companies. Eagle Bancorp, Inc. and Mercantile Bank Corporation are of similar size ($1.0B and $1.0B). Mercantile Bank Corporation trades at the lower P/E: 10.8× against 23.6×. Mercantile Bank Corporation grew revenue faster over the last twelve months: 5.40% against −11.0%. Mercantile Bank Corporation has the higher net margin (24.4% vs 7.56%) and the higher return on invested capital (12.9% vs 3.57%). Both pay a dividend; Mercantile Bank Corporation yields more (2.59% vs 0.12%). Across the 19 metrics below, Mercantile Bank Corporation leads on 16 and Eagle Bancorp, Inc. on 3.

Valuation

Metric EGBN MBWM Banks Regional median
P/E 23.59 10.76 12.02
P/S 1.78 2.67 2.36
P/B 0.88 1.40 1.23
Price to free cash flow 19.39 11.19 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 4.24% 9.30% 8.21%
Free cash flow yield 5.16% 8.94% 9.23%

Profitability

Metric EGBN MBWM Banks Regional median
Gross margin 52.39% 69.43% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 7.56% 24.42% 18.82%
Free cash flow margin 0.00% 23.84% 17.97%
Return on equity 3.81% 13.63% 10.28%
Return on assets 0.43% 1.42% 1.13%
Return on invested capital 3.57% 12.92% 8.45%

Growth

Metric EGBN MBWM Banks Regional median
Revenue growth (TTM) (10.96%) 5.40% 6.37%
EPS growth (last fiscal year) (191.67%) 10.95% 18.85%
Revenue growth, 5-year CAGR 7.78% 13.95% 12.65%
Net income growth, 5-year CAGR 0.00% 14.99% 9.81%

Health

Metric EGBN MBWM Banks Regional median
Debt to equity 0.07 0.60 0.17
Current ratio 0.87 0.93 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric EGBN MBWM Banks Regional median
Dividend yield 0.12% 2.59% 2.49%
Payout ratio 0.03 0.28 0.29

Size

Metric EGBN MBWM Banks Regional median
Market cap 1.02b 1.04b 934.85m

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