Financial Institutions, Inc. (FISI) vs VersaBank (VBNK)

Financial Institutions, Inc. and VersaBank are both Banks Regional companies. Financial Institutions, Inc. and VersaBank are of similar size ($788.6M and $755.7M). Financial Institutions, Inc. trades at the lower P/E: 9.8× against 30.8×. Financial Institutions, Inc. grew revenue faster over the last twelve months: 46.3% against 14.5%. Financial Institutions, Inc. has the higher net margin (21.4% vs 9.94%) and the lower return on invested capital (10.0% vs 41.3%). Both pay a dividend; Financial Institutions, Inc. yields more (6.57% vs 0.62%). Across the 20 metrics below, Financial Institutions, Inc. leads on 15 and VersaBank on 5.

Valuation

Metric FISI VBNK Banks Regional median
P/E 9.84 30.80 12.15
P/S 2.09 3.07 2.37
P/B 1.26 1.87 1.21
Price to free cash flow 14.06 107.29 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.03 1.64 2.27
Earnings yield 10.17% 3.25% 8.11%
Free cash flow yield 7.11% 0.93% 8.98%

Profitability

Metric FISI VBNK Banks Regional median
Gross margin 67.21% 43.56% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 21.40% 9.94% 18.66%
Free cash flow margin 14.85% 2.86% 21.18%
Return on equity 13.41% 6.20% 10.64%
Return on assets 1.30% 0.55% 1.13%
Return on invested capital 10.00% 41.26% 8.33%

Growth

Metric FISI VBNK Banks Regional median
Revenue growth (TTM) 46.26% 14.54% 6.61%
EPS growth (last fiscal year) 235.94% (41.28%) —
Revenue growth, 5-year CAGR 13.07% 27.64% 12.30%
Net income growth, 5-year CAGR 14.77% 9.64% 9.71%

Health

Metric FISI VBNK Banks Regional median
Debt to equity 0.12 0.00 0.22
Current ratio 0.88 1.11 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FISI VBNK Banks Regional median
Dividend yield 6.57% 0.62% 3.75%
Payout ratio 0.36 0.08 0.27

Size

Metric FISI VBNK Banks Regional median
Market cap 788.55m 755.71m 921.07m

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