Hanover Bancorp, Inc. (HNVR) vs MainStreet Bank (MNSB)

Hanover Bancorp, Inc. and MainStreet Bank are both Banks Regional companies. Hanover Bancorp, Inc. and MainStreet Bank are of similar size ($183.9M and $177.0M). MainStreet Bank trades at the lower P/E: 12.2× against 20.9×. Hanover Bancorp, Inc. grew revenue faster over the last twelve months: −4.37% against −6.22%. MainStreet Bank has the higher net margin (11.6% vs 6.55%) and the lower return on invested capital (8.06% vs 8.61%). Both pay a dividend; Hanover Bancorp, Inc. yields more (2.27% vs 2.21%). Across the 20 metrics below, Hanover Bancorp, Inc. leads on 10 and MainStreet Bank on 10.

Valuation

Metric HNVR MNSB Banks Regional median
P/E 20.87 12.17 12.15
P/S 1.36 1.36 2.37
P/B 0.97 0.95 1.21
Price to free cash flow 7.35 7.64 10.80
EV/EBITDA n/m n/m —
EV/Sales 0.60 1.01 2.27
Earnings yield 4.79% 8.22% 8.11%
Free cash flow yield 13.61% 13.09% 8.98%

Profitability

Metric HNVR MNSB Banks Regional median
Gross margin 53.37% 55.96% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 6.55% 11.59% 18.66%
Free cash flow margin 18.47% 17.81% 21.18%
Return on equity 4.72% 8.13% 10.64%
Return on assets 0.40% 0.70% 1.13%
Return on invested capital 8.61% 8.06% 8.33%

Growth

Metric HNVR MNSB Banks Regional median
Revenue growth (TTM) (4.37%) (6.22%) 6.61%
EPS growth (last fiscal year) (39.76%) 210.00% —
Revenue growth, 5-year CAGR 28.13% 14.30% 12.30%
Net income growth, 5-year CAGR (7.64%) (2.25%) 9.71%

Health

Metric HNVR MNSB Banks Regional median
Debt to equity 0.17 0.33 0.22
Current ratio 1.03 1.06 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HNVR MNSB Banks Regional median
Dividend yield 2.27% 2.21% 3.75%
Payout ratio — 0.09 0.27

Size

Metric HNVR MNSB Banks Regional median
Market cap 183.86m 177.03m 921.07m

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