First Mid Bancshares, Inc. (FMBH) vs Preferred Bank (PFBC)

First Mid Bancshares, Inc. and Preferred Bank are both Banks Regional companies. First Mid Bancshares, Inc. and Preferred Bank are of similar size ($1.3B and $1.3B). Preferred Bank trades at the lower P/E: 9.8× against 12.3×. First Mid Bancshares, Inc. grew revenue faster over the last twelve months: 10.4% against 1.04%. Preferred Bank has the higher net margin (26.5% vs 19.8%) and the higher return on invested capital (34.3% vs 9.74%). Both pay a dividend; Preferred Bank yields more (4.10% vs 3.04%). Across the 20 metrics below, Preferred Bank leads on 14 and First Mid Bancshares, Inc. on 6.

Valuation

Metric FMBH PFBC Banks Regional median
P/E 12.31 9.82 12.15
P/S 2.59 2.54 2.37
P/B 1.19 1.63 1.21
Price to free cash flow 10.37 9.22 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.05 1.68 2.27
Earnings yield 8.13% 10.18% 8.11%
Free cash flow yield 9.64% 10.84% 8.98%

Profitability

Metric FMBH PFBC Banks Regional median
Gross margin 75.52% 58.03% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 19.76% 26.54% 18.66%
Free cash flow margin 25.00% 27.55% 21.18%
Return on equity 10.05% 17.23% 10.64%
Return on assets 1.19% 1.80% 1.13%
Return on invested capital 9.74% 34.31% 8.33%

Growth

Metric FMBH PFBC Banks Regional median
Revenue growth (TTM) 10.35% 1.04% 6.61%
EPS growth (last fiscal year) 16.06% 7.99% —
Revenue growth, 5-year CAGR 18.01% 18.09% 12.30%
Net income growth, 5-year CAGR 15.17% 14.04% 9.71%

Health

Metric FMBH PFBC Banks Regional median
Debt to equity 0.03 0.44 0.22
Current ratio 0.95 1.08 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FMBH PFBC Banks Regional median
Dividend yield 3.04% 4.10% 3.75%
Payout ratio 0.25 0.20 0.27

Size

Metric FMBH PFBC Banks Regional median
Market cap 1.31b 1.29b 921.07m

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