Franklin Financial Services Corp. (FRAF) vs First United Corporation (FUNC)

Franklin Financial Services Corp. and First United Corporation are both Banks Regional companies. Franklin Financial Services Corp. and First United Corporation are of similar size ($280.1M and $279.5M). First United Corporation trades at the lower P/E: 11.2× against 11.4×. Franklin Financial Services Corp. grew revenue faster over the last twelve months: 9.78% against 7.79%. First United Corporation has the higher net margin (20.0% vs 18.2%) and the higher return on invested capital (13.2% vs 10.7%). Both pay a dividend; Franklin Financial Services Corp. yields more (4.49% vs 3.63%). Across the 20 metrics below, Franklin Financial Services Corp. leads on 10 and First United Corporation on 10.

Valuation

Metric FRAF FUNC Banks Regional median
P/E 11.41 11.19 12.15
P/S 2.08 2.23 2.37
P/B 1.53 1.32 1.21
Price to free cash flow 6.73 10.30 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.04 1.79 2.27
Earnings yield 8.76% 8.94% 8.11%
Free cash flow yield 14.87% 9.71% 8.98%

Profitability

Metric FRAF FUNC Banks Regional median
Gross margin 69.92% 74.62% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 18.20% 20.03% 18.66%
Free cash flow margin 30.90% 21.69% 21.18%
Return on equity 14.45% 12.42% 10.64%
Return on assets 1.07% 1.23% 1.13%
Return on invested capital 10.71% 13.18% 8.33%

Growth

Metric FRAF FUNC Banks Regional median
Revenue growth (TTM) 9.78% 7.79% 6.61%
EPS growth (last fiscal year) 88.84% 19.68% —
Revenue growth, 5-year CAGR 16.96% 9.60% 12.30%
Net income growth, 5-year CAGR 10.64% 12.11% 9.71%

Health

Metric FRAF FUNC Banks Regional median
Debt to equity 1.09 0.15 0.22
Current ratio 0.93 0.91 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FRAF FUNC Banks Regional median
Dividend yield 4.49% 3.63% 3.75%
Payout ratio 0.39 0.20 0.27

Size

Metric FRAF FUNC Banks Regional median
Market cap 280.14m 279.45m 921.07m

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