Merchants Bancorp (MBIN) vs WaFd, Inc. (WAFD)

Merchants Bancorp and WaFd, Inc. are both Banks Regional companies. Merchants Bancorp and WaFd, Inc. are of similar size ($2.4B and $2.3B). WaFd, Inc. trades at the lower P/E: 9.8× against 10.5×. Merchants Bancorp grew revenue faster over the last twelve months: −3.25% against −4.62%. WaFd, Inc. has the higher net margin (17.4% vs 16.9%) and the higher return on invested capital (3.66% vs 3.17%). Both pay a dividend; WaFd, Inc. yields more (3.65% vs 0.92%). Across the 19 metrics below, WaFd, Inc. leads on 14 and Merchants Bancorp on 5.

Valuation

Metric MBIN WAFD Banks Regional median
P/E 10.46 9.83 12.15
P/S 1.76 1.67 2.37
P/B 1.30 0.85 1.21
Price to free cash flow n/m 8.31 10.80
EV/EBITDA n/m n/m —
EV/Sales 4.69 3.53 2.27
Earnings yield 9.56% 10.18% 8.11%
Free cash flow yield (32.58%) 12.03% 8.98%

Profitability

Metric MBIN WAFD Banks Regional median
Gross margin 52.63% 56.36% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.86% 17.42% 18.66%
Free cash flow margin (57.50%) 20.07% 21.18%
Return on equity 13.16% 8.90% 10.64%
Return on assets 1.13% 0.89% 1.13%
Return on invested capital 3.17% 3.66% 8.33%

Growth

Metric MBIN WAFD Banks Regional median
Revenue growth (TTM) (3.25%) (4.62%) 6.61%
EPS growth (last fiscal year) (40.00%) 5.20% —
Revenue growth, 5-year CAGR 27.18% 14.78% 12.30%
Net income growth, 5-year CAGR 0.89% 4.04% 9.71%

Health

Metric MBIN WAFD Banks Regional median
Debt to equity 1.79 1.08 0.22
Current ratio 1.21 0.98 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MBIN WAFD Banks Regional median
Dividend yield 0.92% 3.65% 3.75%
Payout ratio 0.06 0.24 0.27

Size

Metric MBIN WAFD Banks Regional median
Market cap 2.40b 2.29b 921.07m

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