Finward Bancorp (FNWD) vs Meridian Bank (MRBK)

Finward Bancorp and Meridian Bank are both Banks Regional companies. Finward Bancorp and Meridian Bank are of similar size ($195.2M and $188.2M). Meridian Bank trades at the lower P/E: 8.7× against 19.0×. Meridian Bank grew revenue faster over the last twelve months: 0.72% against 0.15%. Meridian Bank has the higher net margin (10.6% vs 9.65%) and the higher return on invested capital (8.03% vs 4.41%). Both pay a dividend; Meridian Bank yields more (3.33% vs 1.10%). Across the 19 metrics below, Meridian Bank leads on 16 and Finward Bancorp on 3.

Valuation

Metric FNWD MRBK Banks Regional median
P/E 18.99 8.74 12.02
P/S 1.83 0.95 2.36
P/B 1.04 0.95 1.23
Price to free cash flow 10.72 10.39 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.27% 11.44% 8.21%
Free cash flow yield 9.33% 9.62% 9.23%

Profitability

Metric FNWD MRBK Banks Regional median
Gross margin 67.76% 63.55% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 9.65% 10.57% 18.82%
Free cash flow margin 17.07% 9.11% 17.97%
Return on equity 5.90% 11.31% 10.28%
Return on assets 0.48% 0.85% 1.13%
Return on invested capital 4.41% 8.03% 8.45%

Growth

Metric FNWD MRBK Banks Regional median
Revenue growth (TTM) 0.15% 0.72% 6.37%
EPS growth (last fiscal year) (33.80%) 30.34% 18.85%
Revenue growth, 5-year CAGR 7.69% 6.56% 12.65%
Net income growth, 5-year CAGR (12.68%) (3.75%) 9.81%

Health

Metric FNWD MRBK Banks Regional median
Debt to equity 0.36 0.24 0.17
Current ratio 0.88 0.98 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FNWD MRBK Banks Regional median
Dividend yield 1.10% 3.33% 2.49%
Payout ratio 0.21 0.30 0.29

Size

Metric FNWD MRBK Banks Regional median
Market cap 188.16m 195.23m 934.85m

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