Mechanics Bancorp (MCHB) vs Renasant Corporation (RNST)

Mechanics Bancorp and Renasant Corporation are both Banks Regional companies. Mechanics Bancorp and Renasant Corporation are of similar size ($3.7B and $3.5B). Renasant Corporation trades at the lower P/E: 12.0× against 12.3×. Mechanics Bancorp grew revenue faster over the last twelve months: 55.0% against 28.4%. Mechanics Bancorp has the higher net margin (24.0% vs 19.9%) and the higher return on invested capital (11.0% vs 6.92%). Both pay a dividend; Renasant Corporation yields more (2.90% vs 1.06%). Across the 20 metrics below, Mechanics Bancorp leads on 10 and Renasant Corporation on 10.

Valuation

Metric MCHB RNST Banks Regional median
P/E 12.33 12.01 12.15
P/S 2.87 2.35 2.37
P/B 1.21 0.96 1.21
Price to free cash flow 20.13 8.43 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.53 2.29 2.27
Earnings yield 8.11% 8.33% 8.11%
Free cash flow yield 4.97% 11.87% 8.98%

Profitability

Metric MCHB RNST Banks Regional median
Gross margin 78.13% 69.57% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 23.98% 19.94% 18.66%
Free cash flow margin 16.01% 27.27% 21.18%
Return on equity 17.61% 8.21% 10.64%
Return on assets 1.94% 1.17% 1.13%
Return on invested capital 10.95% 6.92% 8.33%

Growth

Metric MCHB RNST Banks Regional median
Revenue growth (TTM) 55.04% 28.39% 6.61%
EPS growth (last fiscal year) 750.17% (36.70%) —
Revenue growth, 5-year CAGR 20.85% 14.50% 12.30%
Net income growth, 5-year CAGR 27.14% 16.73% 9.71%

Health

Metric MCHB RNST Banks Regional median
Debt to equity 0.05 0.21 0.22
Current ratio 0.78 0.91 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MCHB RNST Banks Regional median
Dividend yield 1.06% 2.90% 3.75%
Payout ratio 8.85 0.30 0.27

Size

Metric MCHB RNST Banks Regional median
Market cap 3.49b 3.66b 921.07m

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