Mechanics Bancorp (MCHB) vs WesBanco, Inc. (WSBC)

Mechanics Bancorp and WesBanco, Inc. are both Banks Regional companies. Mechanics Bancorp and WesBanco, Inc. are of similar size ($3.7B and $3.5B). WesBanco, Inc. trades at the lower P/E: 11.2× against 12.3×. Mechanics Bancorp grew revenue faster over the last twelve months: 55.0% against 31.3%. Mechanics Bancorp has the higher net margin (24.0% vs 21.8%) and the higher return on invested capital (11.0% vs 5.95%). Both pay a dividend; WesBanco, Inc. yields more (5.12% vs 1.06%). Across the 20 metrics below, Mechanics Bancorp leads on 11 and WesBanco, Inc. on 9.

Valuation

Metric MCHB WSBC Banks Regional median
P/E 12.33 11.21 12.15
P/S 2.87 2.44 2.37
P/B 1.21 0.96 1.21
Price to free cash flow 20.13 9.43 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.53 2.95 2.27
Earnings yield 8.11% 8.92% 8.11%
Free cash flow yield 4.97% 10.60% 8.98%

Profitability

Metric MCHB WSBC Banks Regional median
Gross margin 78.13% 69.54% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 23.98% 21.78% 18.66%
Free cash flow margin 16.01% 25.81% 21.18%
Return on equity 17.61% 8.78% 10.64%
Return on assets 1.94% 1.20% 1.13%
Return on invested capital 10.95% 5.95% 8.33%

Growth

Metric MCHB WSBC Banks Regional median
Revenue growth (TTM) 55.04% 31.26% 6.61%
EPS growth (last fiscal year) 750.17% (1.33%) —
Revenue growth, 5-year CAGR 20.85% 16.53% 12.30%
Net income growth, 5-year CAGR 27.14% 11.15% 9.71%

Health

Metric MCHB WSBC Banks Regional median
Debt to equity 0.05 0.40 0.22
Current ratio 0.78 0.94 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MCHB WSBC Banks Regional median
Dividend yield 1.06% 5.12% 3.75%
Payout ratio 8.85 0.45 0.27

Size

Metric MCHB WSBC Banks Regional median
Market cap 3.49b 3.68b 921.07m

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