First Merchants Corporation (FRME) vs Merchants Bancorp (MBIN)

First Merchants Corporation and Merchants Bancorp are both Banks Regional companies. First Merchants Corporation and Merchants Bancorp are of similar size ($2.5B and $2.4B). Merchants Bancorp trades at the lower P/E: 10.5× against 13.0×. First Merchants Corporation grew revenue faster over the last twelve months: 3.18% against −3.25%. First Merchants Corporation has the higher net margin (16.9% vs 16.9%) and the higher return on invested capital (3.59% vs 3.17%). Both pay a dividend; First Merchants Corporation yields more (4.14% vs 0.92%). Across the 19 metrics below, First Merchants Corporation leads on 12 and Merchants Bancorp on 7.

Valuation

Metric FRME MBIN Banks Regional median
P/E 13.01 10.46 12.15
P/S 2.33 1.76 2.37
P/B 0.95 1.30 1.21
Price to free cash flow 8.05 n/m 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.14 4.69 2.27
Earnings yield 7.69% 9.56% 8.11%
Free cash flow yield 12.42% (32.58%) 8.98%

Profitability

Metric FRME MBIN Banks Regional median
Gross margin 63.41% 52.63% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.88% 16.86% 18.66%
Free cash flow margin 28.88% (57.50%) 21.18%
Return on equity 7.37% 13.16% 10.64%
Return on assets 0.92% 1.13% 1.13%
Return on invested capital 3.59% 3.17% 8.33%

Growth

Metric FRME MBIN Banks Regional median
Revenue growth (TTM) 3.18% (3.25%) 6.61%
EPS growth (last fiscal year) 13.78% (40.00%) —
Revenue growth, 5-year CAGR 13.50% 27.18% 12.30%
Net income growth, 5-year CAGR 8.57% 0.89% 9.71%

Health

Metric FRME MBIN Banks Regional median
Debt to equity 0.56 1.79 0.22
Current ratio 0.95 1.21 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FRME MBIN Banks Regional median
Dividend yield 4.14% 0.92% 3.75%
Payout ratio 0.30 0.06 0.27

Size

Metric FRME MBIN Banks Regional median
Market cap 2.54b 2.40b 921.07m

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