Meridian Bank (MRBK) vs OP Bancorp (OPBK)

Meridian Bank and OP Bancorp are both Banks Regional companies. Meridian Bank and OP Bancorp are of similar size ($228.3M and $225.6M). OP Bancorp trades at the lower P/E: 7.8× against 10.3×. OP Bancorp grew revenue faster over the last twelve months: 7.14% against 0.72%. OP Bancorp has the higher net margin (16.9% vs 10.6%) and the higher return on invested capital (15.4% vs 8.03%). Both pay a dividend; Meridian Bank yields more (5.06% vs 4.96%). Across the 20 metrics below, OP Bancorp leads on 15 and Meridian Bank on 5.

Valuation

Metric MRBK OPBK Banks Regional median
P/E 10.31 7.78 12.15
P/S 1.12 1.32 2.37
P/B 1.12 0.95 1.21
Price to free cash flow 12.25 8.38 10.80
EV/EBITDA n/m n/m —
EV/Sales 1.18 0.88 2.27
Earnings yield 9.70% 12.85% 8.11%
Free cash flow yield 8.17% 11.94% 8.98%

Profitability

Metric MRBK OPBK Banks Regional median
Gross margin 63.55% 57.65% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 10.57% 16.90% 18.66%
Free cash flow margin 9.11% 15.72% 21.18%
Return on equity 11.31% 12.83% 10.64%
Return on assets 0.85% 1.09% 1.13%
Return on invested capital 8.03% 15.37% 8.33%

Growth

Metric MRBK OPBK Banks Regional median
Revenue growth (TTM) 0.72% 7.14% 6.61%
EPS growth (last fiscal year) 30.34% 23.74% —
Revenue growth, 5-year CAGR 6.56% 20.94% 12.30%
Net income growth, 5-year CAGR (3.75%) 14.67% 9.71%

Health

Metric MRBK OPBK Banks Regional median
Debt to equity 0.24 0.42 0.22
Current ratio 0.98 1.02 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MRBK OPBK Banks Regional median
Dividend yield 5.06% 4.96% 3.75%
Payout ratio 0.28 0.25 0.27

Size

Metric MRBK OPBK Banks Regional median
Market cap 228.32m 225.63m 921.07m

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