First Merchants Corporation (FRME) vs Stock Yards Bancorp, Inc. (SYBT)

First Merchants Corporation and Stock Yards Bancorp, Inc. are both Banks Regional companies. First Merchants Corporation and Stock Yards Bancorp, Inc. are of similar size ($2.5B and $2.4B). First Merchants Corporation trades at the lower P/E: 13.0× against 15.6×. Stock Yards Bancorp, Inc. grew revenue faster over the last twelve months: 9.39% against 3.18%. Stock Yards Bancorp, Inc. has the higher net margin (25.4% vs 16.9%) and the higher return on invested capital (16.5% vs 3.59%). Both pay a dividend; First Merchants Corporation yields more (4.14% vs 2.64%). Across the 20 metrics below, Stock Yards Bancorp, Inc. leads on 11 and First Merchants Corporation on 9.

Valuation

Metric FRME SYBT Banks Regional median
P/E 13.01 15.56 12.15
P/S 2.33 4.07 2.37
P/B 0.95 1.92 1.21
Price to free cash flow 8.05 16.10 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.14 3.19 2.27
Earnings yield 7.69% 6.43% 8.11%
Free cash flow yield 12.42% 6.21% 8.98%

Profitability

Metric FRME SYBT Banks Regional median
Gross margin 63.41% 71.98% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.88% 25.41% 18.66%
Free cash flow margin 28.88% 25.26% 21.18%
Return on equity 7.37% 13.28% 10.64%
Return on assets 0.92% 1.53% 1.13%
Return on invested capital 3.59% 16.50% 8.33%

Growth

Metric FRME SYBT Banks Regional median
Revenue growth (TTM) 3.18% 9.39% 6.61%
EPS growth (last fiscal year) 13.78% 22.11% —
Revenue growth, 5-year CAGR 13.50% 23.09% 12.30%
Net income growth, 5-year CAGR 8.57% 18.94% 9.71%

Health

Metric FRME SYBT Banks Regional median
Debt to equity 0.56 0.26 0.22
Current ratio 0.95 1.01 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FRME SYBT Banks Regional median
Dividend yield 4.14% 2.64% 3.75%
Payout ratio 0.30 0.30 0.27

Size

Metric FRME SYBT Banks Regional median
Market cap 2.54b 2.43b 921.07m

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