Farmers & Merchants Bancorp Inc. (FMAO) vs Ponce Financial Group, Inc. (PDLB)

Farmers & Merchants Bancorp Inc. and Ponce Financial Group, Inc. are both Banks Regional companies. Farmers & Merchants Bancorp Inc. and Ponce Financial Group, Inc. are of similar size ($490.3M and $482.5M). Farmers & Merchants Bancorp Inc. trades at the lower P/E: 12.0× against 14.3×. Ponce Financial Group, Inc. grew revenue faster over the last twelve months: 12.5% against 7.14%. Farmers & Merchants Bancorp Inc. has the higher net margin (20.0% vs 16.0%) and the higher return on invested capital (8.07% vs 2.71%). Across the 19 metrics below, Farmers & Merchants Bancorp Inc. leads on 10 and Ponce Financial Group, Inc. on 9.

Valuation

Metric FMAO PDLB Banks Regional median
P/E 12.00 14.32 12.15
P/S 2.41 2.29 2.37
P/B 1.23 1.40 1.21
Price to free cash flow 11.13 8.14 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.46 4.65 2.27
Earnings yield 8.33% 6.98% 8.11%
Free cash flow yield 8.98% 12.29% 8.98%

Profitability

Metric FMAO PDLB Banks Regional median
Gross margin 66.09% 58.68% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.02% 15.96% 18.66%
Free cash flow margin 21.61% 28.18% 21.18%
Return on equity 10.75% 10.33% 10.64%
Return on assets 1.15% 0.98% 1.13%
Return on invested capital 8.07% 2.71% 8.33%

Growth

Metric FMAO PDLB Banks Regional median
Revenue growth (TTM) 7.14% 12.54% 6.61%
EPS growth (last fiscal year) 27.89% 160.87% —
Revenue growth, 5-year CAGR 17.00% 23.97% 12.30%
Net income growth, 5-year CAGR 10.53% 48.24% 9.71%

Health

Metric FMAO PDLB Banks Regional median
Debt to equity 0.44 1.11 0.22
Current ratio 0.96 1.34 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FMAO PDLB Banks Regional median
Dividend yield 4.06% — 3.75%
Payout ratio 0.39 0.00 0.27

Size

Metric FMAO PDLB Banks Regional median
Market cap 482.47m 490.29m 921.07m

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