Farmers & Merchants Bancorp Inc. (FMAO) vs RBB Bancorp (RBB)

Farmers & Merchants Bancorp Inc. and RBB Bancorp are both Banks Regional companies. Farmers & Merchants Bancorp Inc. and RBB Bancorp are of similar size ($482.5M and $447.4M). RBB Bancorp trades at the lower P/E: 10.8× against 12.0×. Farmers & Merchants Bancorp Inc. grew revenue faster over the last twelve months: 7.14% against 3.04%. Farmers & Merchants Bancorp Inc. has the higher net margin (20.0% vs 17.3%) and the higher return on invested capital (8.07% vs 6.37%). Both pay a dividend; Farmers & Merchants Bancorp Inc. yields more (4.06% vs 3.72%). Across the 20 metrics below, Farmers & Merchants Bancorp Inc. leads on 11 and RBB Bancorp on 9.

Valuation

Metric FMAO RBB Banks Regional median
P/E 12.00 10.85 12.15
P/S 2.41 1.87 2.37
P/B 1.23 0.84 1.21
Price to free cash flow 11.13 8.30 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.46 1.92 2.27
Earnings yield 8.33% 9.22% 8.11%
Free cash flow yield 8.98% 12.05% 8.98%

Profitability

Metric FMAO RBB Banks Regional median
Gross margin 66.09% 54.87% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.02% 17.26% 18.66%
Free cash flow margin 21.61% 23.01% 21.18%
Return on equity 10.75% 7.93% 10.64%
Return on assets 1.15% 1.00% 1.13%
Return on invested capital 8.07% 6.37% 8.33%

Growth

Metric FMAO RBB Banks Regional median
Revenue growth (TTM) 7.14% 3.04% 6.61%
EPS growth (last fiscal year) 27.89% 24.49% —
Revenue growth, 5-year CAGR 17.00% 9.22% 12.30%
Net income growth, 5-year CAGR 10.53% (0.60%) 9.71%

Health

Metric FMAO RBB Banks Regional median
Debt to equity 0.44 0.55 0.22
Current ratio 0.96 1.07 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FMAO RBB Banks Regional median
Dividend yield 4.06% 3.72% 3.75%
Payout ratio 0.39 0.20 0.27

Size

Metric FMAO RBB Banks Regional median
Market cap 482.47m 447.43m 921.07m

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