First Business Financial Services, Inc. (FBIZ) vs Southern First Bancshares, Inc. (SFST)

First Business Financial Services, Inc. and Southern First Bancshares, Inc. are both Banks Regional companies. First Business Financial Services, Inc. and Southern First Bancshares, Inc. are of similar size ($587.5M and $569.8M). First Business Financial Services, Inc. trades at the lower P/E: 10.8× against 12.8×. Southern First Bancshares, Inc. grew revenue faster over the last twelve months: 8.92% against 6.56%. First Business Financial Services, Inc. has the higher net margin (18.6% vs 16.8%) and the lower return on invested capital (7.15% vs 30.7%). Across the 19 metrics below, First Business Financial Services, Inc. leads on 13 and Southern First Bancshares, Inc. on 6.

Valuation

Metric FBIZ SFST Banks Regional median
P/E 10.75 12.79 12.15
P/S 2.01 2.36 2.37
P/B 1.51 1.23 1.21
Price to free cash flow 7.15 13.99 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.65 0.88 2.27
Earnings yield 9.30% 7.82% 8.11%
Free cash flow yield 13.98% 7.15% 8.98%

Profitability

Metric FBIZ SFST Banks Regional median
Gross margin 61.75% 56.20% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 18.64% 16.78% 18.66%
Free cash flow margin 28.12% 16.86% 21.18%
Return on equity 14.99% 9.93% 10.64%
Return on assets 1.28% 0.88% 1.13%
Return on invested capital 7.15% 30.67% 8.33%

Growth

Metric FBIZ SFST Banks Regional median
Revenue growth (TTM) 6.56% 8.92% 6.61%
EPS growth (last fiscal year) 14.23% 96.34% —
Revenue growth, 5-year CAGR 18.18% 12.95% 12.30%
Net income growth, 5-year CAGR 23.98% 10.63% 9.71%

Health

Metric FBIZ SFST Banks Regional median
Debt to equity 0.88 0.03 0.22
Current ratio 1.06 1.04 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FBIZ SFST Banks Regional median
Dividend yield 2.69% — 3.75%
Payout ratio 0.19 0.00 0.27

Size

Metric FBIZ SFST Banks Regional median
Market cap 587.46m 569.82m 921.07m

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