Mercantile Bank Corporation (MBWM) vs Metropolitan Bank Holding Corp. (MCB)

Mercantile Bank Corporation and Metropolitan Bank Holding Corp. are both Banks Regional companies. Mercantile Bank Corporation and Metropolitan Bank Holding Corp. are of similar size ($1.1B and $1.0B). Mercantile Bank Corporation trades at the lower P/E: 10.3× against 10.9×. Metropolitan Bank Holding Corp. grew revenue faster over the last twelve months: 10.5% against 4.47%. Mercantile Bank Corporation has the higher net margin (24.8% vs 15.6%) and the lower return on invested capital (8.33% vs 10.4%). Both pay a dividend; Mercantile Bank Corporation yields more (2.66% vs 1.09%). Across the 19 metrics below, Metropolitan Bank Holding Corp. leads on 11 and Mercantile Bank Corporation on 8.

Valuation

Metric MBWM MCB Banks Regional median
P/E 10.34 10.91 11.98
P/S 2.64 1.94 2.34
P/B 1.34 1.12 1.19
Price to free cash flow 14.88 10.84 10.63
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.67% 9.17% 8.23%
Free cash flow yield 6.72% 9.23% 9.08%

Profitability

Metric MBWM MCB Banks Regional median
Gross margin 67.80% 62.89% 69.55%
Operating margin 0.00% 0.00% 0.00%
Net margin 24.75% 15.58% 18.66%
Free cash flow margin 17.73% 17.92% 21.11%
Return on equity 13.73% 10.24% 10.65%
Return on assets 1.46% 1.04% 1.13%
Return on invested capital 8.33% 10.37% 8.35%

Growth

Metric MBWM MCB Banks Regional median
Revenue growth (TTM) 4.47% 10.54% 6.98%
EPS growth (last fiscal year) 10.95% 11.64% 18.88%
Revenue growth, 5-year CAGR 13.95% 26.91% 12.38%
Net income growth, 5-year CAGR 14.99% 12.69% 9.71%

Health

Metric MBWM MCB Banks Regional median
Debt to equity 0.59 0.02 0.22
Current ratio 0.93 0.97 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MBWM MCB Banks Regional median
Dividend yield 2.66% 1.09% 2.57%
Payout ratio 0.27 0.12 0.30

Size

Metric MBWM MCB Banks Regional median
Market cap 1.01b 1.08b 913.33m

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