First Commonwealth Financial Corporation (FCF) vs Northwest Bancshares, Inc. (NWBI)

First Commonwealth Financial Corporation and Northwest Bancshares, Inc. are both Banks Regional companies. First Commonwealth Financial Corporation and Northwest Bancshares, Inc. are of similar size ($2.2B and $2.1B). First Commonwealth Financial Corporation trades at the lower P/E: 12.8× against 14.6×. Northwest Bancshares, Inc. grew revenue faster over the last twelve months: 14.6% against 5.18%. First Commonwealth Financial Corporation has the higher net margin (22.6% vs 16.3%) and the higher return on invested capital (8.76% vs 4.91%). Both pay a dividend; Northwest Bancshares, Inc. yields more (6.81% vs 4.04%). Across the 20 metrics below, First Commonwealth Financial Corporation leads on 13 and Northwest Bancshares, Inc. on 7.

Valuation

Metric FCF NWBI Banks Regional median
P/E 12.79 14.58 12.15
P/S 2.85 2.38 2.37
P/B 1.35 1.16 1.21
Price to free cash flow 11.90 16.28 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.78 3.03 2.27
Earnings yield 7.82% 6.86% 8.11%
Free cash flow yield 8.40% 6.14% 8.98%

Profitability

Metric FCF NWBI Banks Regional median
Gross margin 73.47% 74.85% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 22.62% 16.26% 18.66%
Free cash flow margin 23.97% 14.63% 21.18%
Return on equity 10.91% 8.57% 10.64%
Return on assets 1.38% 0.97% 1.13%
Return on invested capital 8.76% 4.91% 8.33%

Growth

Metric FCF NWBI Banks Regional median
Revenue growth (TTM) 5.18% 14.55% 6.61%
EPS growth (last fiscal year) 5.76% 16.46% —
Revenue growth, 5-year CAGR 13.02% 9.19% 12.30%
Net income growth, 5-year CAGR 15.70% 10.97% 9.71%

Health

Metric FCF NWBI Banks Regional median
Debt to equity 0.08 0.44 0.22
Current ratio 0.92 0.95 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FCF NWBI Banks Regional median
Dividend yield 4.04% 6.81% 3.75%
Payout ratio 0.33 0.74 0.27

Size

Metric FCF NWBI Banks Regional median
Market cap 2.12b 2.22b 921.07m

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