First Internet Bancorp (INBK) vs Meridian Bank (MRBK)

First Internet Bancorp and Meridian Bank are both Banks Regional companies. First Internet Bancorp and Meridian Bank are of similar size ($228.3M and $227.4M). First Internet Bancorp has negative trailing earnings, so its P/E is not meaningful; Meridian Bank trades at 10.3×. Meridian Bank grew revenue faster over the last twelve months: 0.72% against −9.20%. Meridian Bank has the higher net margin (10.6% vs −9.77%) and the higher return on invested capital (8.03% vs −9.59%). Both pay a dividend; Meridian Bank yields more (5.06% vs 0.77%). Across the 19 metrics below, Meridian Bank leads on 11 and First Internet Bancorp on 8.

Valuation

Metric INBK MRBK Banks Regional median
P/E n/m 10.31 12.15
P/S 0.72 1.12 2.37
P/B 0.64 1.12 1.21
Price to free cash flow 1.44 12.25 10.80
EV/EBITDA n/m n/m —
EV/Sales 0.51 1.18 2.27
Earnings yield (13.60%) 9.70% 8.11%
Free cash flow yield 69.22% 8.17% 8.98%

Profitability

Metric INBK MRBK Banks Regional median
Gross margin 40.91% 63.55% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin (9.77%) 10.57% 18.66%
Free cash flow margin 49.69% 9.11% 21.18%
Return on equity (8.34%) 11.31% 10.64%
Return on assets (0.54%) 0.85% 1.13%
Return on invested capital (9.59%) 8.03% 8.33%

Growth

Metric INBK MRBK Banks Regional median
Revenue growth (TTM) (9.20%) 0.72% 6.61%
EPS growth (last fiscal year) (239.93%) 30.34% —
Revenue growth, 5-year CAGR 13.27% 6.56% 12.30%
Net income growth, 5-year CAGR 0.00% (3.75%) 9.71%

Health

Metric INBK MRBK Banks Regional median
Debt to equity 0.95 0.24 0.22
Current ratio 0.88 0.98 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric INBK MRBK Banks Regional median
Dividend yield 0.77% 5.06% 3.75%
Payout ratio 0.14 0.28 0.27

Size

Metric INBK MRBK Banks Regional median
Market cap 227.42m 228.32m 921.07m

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