Equity Bancshares, Inc. (EQBK) vs Mercantile Bank Corporation (MBWM)

Equity Bancshares, Inc. and Mercantile Bank Corporation are both Banks Regional companies. Equity Bancshares, Inc. and Mercantile Bank Corporation are of similar size ($1.0B and $991.9M). Mercantile Bank Corporation trades at the lower P/E: 10.6× against 28.6×. Equity Bancshares, Inc. grew revenue faster over the last twelve months: 13.3% against 4.47%. Mercantile Bank Corporation has the higher net margin (24.8% vs 9.42%) and the higher return on invested capital (8.33% vs 4.80%). Both pay a dividend; Mercantile Bank Corporation yields more (3.81% vs 1.50%). Across the 20 metrics below, Mercantile Bank Corporation leads on 14 and Equity Bancshares, Inc. on 6.

Valuation

Metric EQBK MBWM Banks Regional median
P/E 28.60 10.57 12.15
P/S 2.64 2.70 2.37
P/B 1.21 1.37 1.21
Price to free cash flow 23.16 15.21 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.47 2.97 2.27
Earnings yield 3.50% 9.46% 8.11%
Free cash flow yield 4.32% 6.57% 8.98%

Profitability

Metric EQBK MBWM Banks Regional median
Gross margin 67.33% 67.80% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 9.42% 24.75% 18.66%
Free cash flow margin 11.38% 17.73% 21.18%
Return on equity 4.90% 13.73% 10.64%
Return on assets 0.55% 1.46% 1.13%
Return on invested capital 4.80% 8.33% 8.33%

Growth

Metric EQBK MBWM Banks Regional median
Revenue growth (TTM) 13.26% 4.47% 6.61%
EPS growth (last fiscal year) (69.25%) 10.95% —
Revenue growth, 5-year CAGR 11.63% 13.95% 12.30%
Net income growth, 5-year CAGR 0.00% 14.99% 9.71%

Health

Metric EQBK MBWM Banks Regional median
Debt to equity 0.58 0.59 0.22
Current ratio 0.93 0.93 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric EQBK MBWM Banks Regional median
Dividend yield 1.50% 3.81% 3.75%
Payout ratio 0.13 0.26 0.27

Size

Metric EQBK MBWM Banks Regional median
Market cap 991.94m 1.03b 921.07m

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