Mechanics Bancorp (MCHB) vs Simmons First National Corporation (SFNC)

Mechanics Bancorp and Simmons First National Corporation are both Banks Regional companies. Mechanics Bancorp and Simmons First National Corporation are of similar size ($3.5B and $3.4B). Simmons First National Corporation has negative trailing earnings, so its P/E is not meaningful; Mechanics Bancorp trades at 12.3×. Mechanics Bancorp grew revenue faster over the last twelve months: 55.0% against −56.9%. Mechanics Bancorp has the higher net margin (24.0% vs −56.5%) and the higher return on invested capital (11.0% vs −6.96%). Both pay a dividend; Simmons First National Corporation yields more (4.69% vs 1.06%). Across the 19 metrics below, Mechanics Bancorp leads on 13 and Simmons First National Corporation on 6.

Valuation

Metric MCHB SFNC Banks Regional median
P/E 12.33 n/m 12.15
P/S 2.87 5.44 2.37
P/B 1.21 0.97 1.21
Price to free cash flow 20.13 6.82 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.53 6.50 2.27
Earnings yield 8.11% (10.93%) 8.11%
Free cash flow yield 4.97% 14.65% 8.98%

Profitability

Metric MCHB SFNC Banks Regional median
Gross margin 78.13% 27.41% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 23.98% (56.54%) 18.66%
Free cash flow margin 16.01% 79.79% 21.18%
Return on equity 17.61% (9.94%) 10.64%
Return on assets 1.94% (1.36%) 1.13%
Return on invested capital 10.95% (6.96%) 8.33%

Growth

Metric MCHB SFNC Banks Regional median
Revenue growth (TTM) 55.04% (56.85%) 6.61%
EPS growth (last fiscal year) 750.17% (343.80%) —
Revenue growth, 5-year CAGR 20.85% (8.88%) 12.30%
Net income growth, 5-year CAGR 27.14% 0.00% 9.71%

Health

Metric MCHB SFNC Banks Regional median
Debt to equity 0.05 0.36 0.22
Current ratio 0.78 0.93 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MCHB SFNC Banks Regional median
Dividend yield 1.06% 4.69% 3.75%
Payout ratio 8.85 0.37 0.27

Size

Metric MCHB SFNC Banks Regional median
Market cap 3.49b 3.38b 921.07m

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