Mercantile Bank Corporation (MBWM) vs Southside Bancshares, Inc. (SBSI)

Mercantile Bank Corporation and Southside Bancshares, Inc. are both Banks Regional companies. Mercantile Bank Corporation and Southside Bancshares, Inc. are of similar size ($1.0B and $1.0B). Southside Bancshares, Inc. trades at the lower P/E: 10.4× against 10.8×. Southside Bancshares, Inc. grew revenue faster over the last twelve months: 8.51% against 5.40%. Mercantile Bank Corporation has the higher net margin (24.4% vs 21.5%) and the higher return on invested capital (12.9% vs 5.12%). Both pay a dividend; Southside Bancshares, Inc. yields more (4.21% vs 2.59%). Across the 19 metrics below, Mercantile Bank Corporation leads on 10 and Southside Bancshares, Inc. on 9.

Valuation

Metric MBWM SBSI Banks Regional median
P/E 10.76 10.38 12.02
P/S 2.67 2.23 2.36
P/B 1.40 1.22 1.23
Price to free cash flow 11.19 6.62 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.30% 9.63% 8.21%
Free cash flow yield 8.94% 15.10% 9.23%

Profitability

Metric MBWM SBSI Banks Regional median
Gross margin 69.43% 60.37% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 24.42% 21.47% 18.82%
Free cash flow margin 23.84% 33.63% 17.97%
Return on equity 13.63% 11.80% 10.28%
Return on assets 1.42% 1.15% 1.13%
Return on invested capital 12.92% 5.12% 8.45%

Growth

Metric MBWM SBSI Banks Regional median
Revenue growth (TTM) 5.40% 8.51% 6.37%
EPS growth (last fiscal year) 10.95% (21.31%) 18.85%
Revenue growth, 5-year CAGR 13.95% 8.28% 12.65%
Net income growth, 5-year CAGR 14.99% (3.38%) 9.81%

Health

Metric MBWM SBSI Banks Regional median
Debt to equity 0.60 1.31 0.17
Current ratio 0.93 0.79 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MBWM SBSI Banks Regional median
Dividend yield 2.59% 4.21% 2.49%
Payout ratio 0.28 0.44 0.29

Size

Metric MBWM SBSI Banks Regional median
Market cap 1.04b 1.02b 934.85m

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