Merchants Bancorp (MBIN) vs 1st Source Corporation (SRCE)

Merchants Bancorp and 1st Source Corporation are both Banks Regional companies. Merchants Bancorp and 1st Source Corporation are of similar size ($2.3B and $2.1B). Merchants Bancorp trades at the lower P/E: 9.8× against 12.3×. 1st Source Corporation grew revenue faster over the last twelve months: 4.21% against −3.25%. 1st Source Corporation has the higher net margin (27.8% vs 16.9%) and the higher return on invested capital (10.5% vs 3.17%). Both pay a dividend; 1st Source Corporation yields more (1.96% vs 0.88%). Across the 18 metrics below, 1st Source Corporation leads on 11 and Merchants Bancorp on 7.

Valuation

Metric MBIN SRCE Banks Regional median
P/E 9.79 12.34 11.98
P/S 1.65 3.40 2.34
P/B 1.22 1.53 1.19
Price to free cash flow n/m 9.59 10.63
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.21% 8.10% 8.23%
Free cash flow yield (34.81%) 10.43% 9.08%

Profitability

Metric MBIN SRCE Banks Regional median
Gross margin 52.63% 74.40% 69.55%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.86% 27.81% 18.66%
Free cash flow margin (57.50%) 35.44% 21.11%
Return on equity 13.16% 12.97% 10.65%
Return on assets 1.13% 1.84% 1.13%
Return on invested capital 3.17% 10.48% 8.35%

Growth

Metric MBIN SRCE Banks Regional median
Revenue growth (TTM) (3.25%) 4.21% 6.98%
EPS growth (last fiscal year) (40.00%) 19.59% 18.88%
Revenue growth, 5-year CAGR 27.18% 10.34% 12.38%
Net income growth, 5-year CAGR 0.89% 14.16% 9.71%

Health

Metric MBIN SRCE Banks Regional median
Debt to equity 1.79 0.07 0.22
Current ratio 1.21 0.97 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MBIN SRCE Banks Regional median
Dividend yield 0.88% 1.96% 2.57%
Payout ratio 0.09 0.24 0.30

Size

Metric MBIN SRCE Banks Regional median
Market cap 2.25b 2.06b 913.33m

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