Heritage Financial Corporation (HFWA) vs Metropolitan Bank Holding Corp. (MCB)

Heritage Financial Corporation and Metropolitan Bank Holding Corp. are both Banks Regional companies. Heritage Financial Corporation and Metropolitan Bank Holding Corp. are of similar size ($1.2B and $1.1B). Metropolitan Bank Holding Corp. trades at the lower P/E: 11.2× against 13.4×. Heritage Financial Corporation grew revenue faster over the last twelve months: 17.2% against 10.5%. Heritage Financial Corporation has the higher net margin (20.4% vs 15.6%) and the lower return on invested capital (5.20% vs 10.4%). Across the 19 metrics below, Metropolitan Bank Holding Corp. leads on 13 and Heritage Financial Corporation on 6.

Valuation

Metric HFWA MCB Banks Regional median
P/E 13.41 11.20 12.15
P/S 3.08 2.00 2.37
P/B 1.06 1.15 1.21
Price to free cash flow 14.59 11.13 10.80
EV/EBITDA n/m n/m —
EV/Sales 3.04 1.59 2.27
Earnings yield 7.46% 8.93% 8.11%
Free cash flow yield 6.85% 8.98% 8.98%

Profitability

Metric HFWA MCB Banks Regional median
Gross margin 77.18% 62.89% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 20.44% 15.58% 18.66%
Free cash flow margin 21.11% 17.92% 21.18%
Return on equity 7.80% 10.24% 10.64%
Return on assets 1.01% 1.04% 1.13%
Return on invested capital 5.20% 10.37% 8.33%

Growth

Metric HFWA MCB Banks Regional median
Revenue growth (TTM) 17.17% 10.54% 6.61%
EPS growth (last fiscal year) 58.06% 11.64% —
Revenue growth, 5-year CAGR 5.96% 26.91% 12.30%
Net income growth, 5-year CAGR 7.72% 12.69% 9.71%

Health

Metric HFWA MCB Banks Regional median
Debt to equity 0.17 0.02 0.22
Current ratio 0.83 0.97 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HFWA MCB Banks Regional median
Dividend yield 5.04% — 3.75%
Payout ratio 0.38 0.00 0.27

Size

Metric HFWA MCB Banks Regional median
Market cap 1.16b 1.10b 921.07m

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