Mercantile Bank Corporation (MBWM) vs MetroCity Bankshares, Inc. (MCBS)

Mercantile Bank Corporation and MetroCity Bankshares, Inc. are both Banks Regional companies. Mercantile Bank Corporation and MetroCity Bankshares, Inc. are of similar size ($1.0B and $1.0B). Mercantile Bank Corporation trades at the lower P/E: 10.6× against 12.0×. MetroCity Bankshares, Inc. grew revenue faster over the last twelve months: 19.3% against 4.47%. MetroCity Bankshares, Inc. has the higher net margin (28.3% vs 24.8%) and the higher return on invested capital (10.5% vs 8.33%). Both pay a dividend; Mercantile Bank Corporation yields more (3.81% vs 3.45%). Across the 20 metrics below, Mercantile Bank Corporation leads on 10 and MetroCity Bankshares, Inc. on 10.

Valuation

Metric MBWM MCBS Banks Regional median
P/E 10.57 11.98 12.15
P/S 2.70 3.56 2.37
P/B 1.37 1.77 1.21
Price to free cash flow 15.21 12.31 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.97 3.95 2.27
Earnings yield 9.46% 8.35% 8.11%
Free cash flow yield 6.57% 8.13% 8.98%

Profitability

Metric MBWM MCBS Banks Regional median
Gross margin 67.80% 64.72% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 24.75% 28.34% 18.66%
Free cash flow margin 17.73% 28.95% 21.18%
Return on equity 13.73% 15.91% 10.64%
Return on assets 1.46% 1.96% 1.13%
Return on invested capital 8.33% 10.53% 8.33%

Growth

Metric MBWM MCBS Banks Regional median
Revenue growth (TTM) 4.47% 19.32% 6.61%
EPS growth (last fiscal year) 10.95% 4.76% —
Revenue growth, 5-year CAGR 13.95% 18.60% 12.30%
Net income growth, 5-year CAGR 14.99% 13.49% 9.71%

Health

Metric MBWM MCBS Banks Regional median
Debt to equity 0.59 0.66 0.22
Current ratio 0.93 1.21 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MBWM MCBS Banks Regional median
Dividend yield 3.81% 3.45% 3.75%
Payout ratio 0.26 0.30 0.27

Size

Metric MBWM MCBS Banks Regional median
Market cap 1.03b 1.00b 921.07m

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