First Bancorp (FBNC) vs First Merchants Corporation (FRME)

First Bancorp and First Merchants Corporation are both Banks Regional companies. First Bancorp and First Merchants Corporation are of similar size ($2.6B and $2.5B). First Merchants Corporation trades at the lower P/E: 13.0× against 19.7×. First Bancorp grew revenue faster over the last twelve months: 4.32% against 3.18%. First Bancorp has the higher net margin (23.1% vs 16.9%) and the higher return on invested capital (8.32% vs 3.59%). Both pay a dividend; First Merchants Corporation yields more (4.14% vs 2.58%). Across the 20 metrics below, First Merchants Corporation leads on 11 and First Bancorp on 9.

Valuation

Metric FBNC FRME Banks Regional median
P/E 19.72 13.01 12.15
P/S 4.55 2.33 2.37
P/B 1.52 0.95 1.21
Price to free cash flow 11.17 8.05 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.72 3.14 2.27
Earnings yield 5.07% 7.69% 8.11%
Free cash flow yield 8.96% 12.42% 8.98%

Profitability

Metric FBNC FRME Banks Regional median
Gross margin 73.64% 63.41% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 23.08% 16.88% 18.66%
Free cash flow margin 40.76% 28.88% 21.18%
Return on equity 8.11% 7.37% 10.64%
Return on assets 1.03% 0.92% 1.13%
Return on invested capital 8.32% 3.59% 8.33%

Growth

Metric FBNC FRME Banks Regional median
Revenue growth (TTM) 4.32% 3.18% 6.61%
EPS growth (last fiscal year) 45.65% 13.78% —
Revenue growth, 5-year CAGR 11.48% 13.50% 12.30%
Net income growth, 5-year CAGR 6.37% 8.57% 9.71%

Health

Metric FBNC FRME Banks Regional median
Debt to equity 0.04 0.56 0.22
Current ratio 0.85 0.95 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FBNC FRME Banks Regional median
Dividend yield 2.58% 4.14% 3.75%
Payout ratio 0.27 0.30 0.27

Size

Metric FBNC FRME Banks Regional median
Market cap 2.60b 2.54b 921.07m

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