Mechanics Bancorp (MCHB) vs Nicolet Bankshares Inc. (NIC)

Mechanics Bancorp and Nicolet Bankshares Inc. are both Banks Regional companies. Mechanics Bancorp and Nicolet Bankshares Inc. are of similar size ($3.5B and $3.5B). Mechanics Bancorp trades at the lower P/E: 12.3× against 18.6×. Mechanics Bancorp grew revenue faster over the last twelve months: 55.0% against 31.6%. Mechanics Bancorp has the higher net margin (24.0% vs 21.8%) and the higher return on invested capital (11.0% vs 8.02%). Both pay a dividend; Nicolet Bankshares Inc. yields more (1.35% vs 1.06%). Across the 20 metrics below, Mechanics Bancorp leads on 13 and Nicolet Bankshares Inc. on 7.

Valuation

Metric MCHB NIC Banks Regional median
P/E 12.33 18.63 12.15
P/S 2.87 5.04 2.37
P/B 1.21 1.57 1.21
Price to free cash flow 20.13 19.88 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.53 4.52 2.27
Earnings yield 8.11% 5.37% 8.11%
Free cash flow yield 4.97% 5.03% 8.98%

Profitability

Metric MCHB NIC Banks Regional median
Gross margin 78.13% 73.37% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 23.98% 21.77% 18.66%
Free cash flow margin 16.01% 25.38% 21.18%
Return on equity 17.61% 8.91% 10.64%
Return on assets 1.94% 1.27% 1.13%
Return on invested capital 10.95% 8.02% 8.33%

Growth

Metric MCHB NIC Banks Regional median
Revenue growth (TTM) 55.04% 31.61% 6.61%
EPS growth (last fiscal year) 750.17% 21.49% —
Revenue growth, 5-year CAGR 20.85% 21.31% 12.30%
Net income growth, 5-year CAGR 27.14% 20.17% 9.71%

Health

Metric MCHB NIC Banks Regional median
Debt to equity 0.05 0.04 0.22
Current ratio 0.78 0.90 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MCHB NIC Banks Regional median
Dividend yield 1.06% 1.35% 3.75%
Payout ratio 8.85 0.00 0.27

Size

Metric MCHB NIC Banks Regional median
Market cap 3.49b 3.51b 921.07m

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