Merchants Bancorp (MBIN) vs Northwest Bancshares, Inc. (NWBI)

Merchants Bancorp and Northwest Bancshares, Inc. are both Banks Regional companies. Merchants Bancorp and Northwest Bancshares, Inc. are of similar size ($2.4B and $2.2B). Merchants Bancorp trades at the lower P/E: 8.3× against 11.1×. Northwest Bancshares, Inc. grew revenue faster over the last twelve months: 13.1% against 0.89%. Northwest Bancshares, Inc. has the higher net margin (20.9% vs 19.9%) and the higher return on invested capital (6.34% vs 4.72%). Both pay a dividend; Northwest Bancshares, Inc. yields more (5.21% vs 0.82%). Across the 17 metrics below, Northwest Bancshares, Inc. leads on 10 and Merchants Bancorp on 7.

Valuation

Metric MBIN NWBI Banks Regional median
P/E 8.28 11.12 12.02
P/S 1.71 2.32 2.36
P/B 1.24 1.18 1.23
Price to free cash flow n/m 16.16 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 12.08% 8.99% 8.21%
Free cash flow yield (32.56%) 6.19% 9.23%

Profitability

Metric MBIN NWBI Banks Regional median
Gross margin 54.70% 75.09% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 19.89% 20.88% 18.82%
Free cash flow margin 0.00% 0.00% 17.97%
Return on equity 15.49% 10.70% 10.28%
Return on assets 1.39% 1.19% 1.13%
Return on invested capital 4.72% 6.34% 8.45%

Growth

Metric MBIN NWBI Banks Regional median
Revenue growth (TTM) 0.89% 13.08% 6.37%
EPS growth (last fiscal year) (40.00%) 16.46% 18.85%
Revenue growth, 5-year CAGR 27.18% 9.19% 12.65%
Net income growth, 5-year CAGR 0.89% 10.97% 9.81%

Health

Metric MBIN NWBI Banks Regional median
Debt to equity 1.22 0.48 0.17
Current ratio 1.11 0.95 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MBIN NWBI Banks Regional median
Dividend yield 0.82% 5.21% 2.49%
Payout ratio 0.07 0.59 0.29

Size

Metric MBIN NWBI Banks Regional median
Market cap 2.40b 2.24b 934.85m

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