First Merchants Corporation (FRME) vs Trustmark Corporation (TRMK)

First Merchants Corporation and Trustmark Corporation are both Banks Regional companies. First Merchants Corporation and Trustmark Corporation are of similar size ($2.7B and $2.5B). Trustmark Corporation trades at the lower P/E: 11.7× against 13.0×. First Merchants Corporation grew revenue faster over the last twelve months: 3.18% against −0.11%. Trustmark Corporation has the higher net margin (21.0% vs 16.9%) and the higher return on invested capital (10.5% vs 3.59%). Both pay a dividend; First Merchants Corporation yields more (4.14% vs 3.45%). Across the 20 metrics below, First Merchants Corporation leads on 11 and Trustmark Corporation on 9.

Valuation

Metric FRME TRMK Banks Regional median
P/E 13.01 11.66 12.15
P/S 2.33 2.41 2.37
P/B 0.95 1.26 1.21
Price to free cash flow 8.05 14.95 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.14 2.02 2.27
Earnings yield 7.69% 8.58% 8.11%
Free cash flow yield 12.42% 6.69% 8.98%

Profitability

Metric FRME TRMK Banks Regional median
Gross margin 63.41% 73.15% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.88% 20.96% 18.66%
Free cash flow margin 28.88% 16.11% 21.18%
Return on equity 7.37% 11.12% 10.64%
Return on assets 0.92% 1.24% 1.13%
Return on invested capital 3.59% 10.48% 8.33%

Growth

Metric FRME TRMK Banks Regional median
Revenue growth (TTM) 3.18% (0.11%) 6.61%
EPS growth (last fiscal year) 13.78% 1.93% —
Revenue growth, 5-year CAGR 13.50% 8.41% 12.30%
Net income growth, 5-year CAGR 8.57% 6.97% 9.71%

Health

Metric FRME TRMK Banks Regional median
Debt to equity 0.56 0.11 0.22
Current ratio 0.95 0.89 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FRME TRMK Banks Regional median
Dividend yield 4.14% 3.45% 3.75%
Payout ratio 0.30 0.54 0.27

Size

Metric FRME TRMK Banks Regional median
Market cap 2.54b 2.68b 921.07m

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