M&T Bank Corporation (MTB) vs Regions Financial Corporation (RF)

M&T Bank Corporation and Regions Financial Corporation are both Banks Regional companies. M&T Bank Corporation is the larger, with a market value of $31.6B against $23.2B — 1.4× the size. Regions Financial Corporation trades at the lower P/E: 11.1× against 11.6×. M&T Bank Corporation grew revenue faster over the last twelve months: 1.00% against 0.46%. Regions Financial Corporation has the higher net margin (22.5% vs 21.5%) and the higher return on invested capital (13.1% vs 10.2%). Both pay a dividend; Regions Financial Corporation yields more (5.20% vs 4.05%). Across the 20 metrics below, Regions Financial Corporation leads on 11 and M&T Bank Corporation on 9.

Valuation

Metric MTB RF Banks Regional median
P/E 11.60 11.14 12.15
P/S 2.42 2.47 2.37
P/B 1.26 1.34 1.21
Price to free cash flow 8.98 14.38 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.13 1.91 2.27
Earnings yield 8.62% 8.98% 8.11%
Free cash flow yield 11.14% 6.95% 8.98%

Profitability

Metric MTB RF Banks Regional median
Gross margin 74.61% 79.61% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 21.53% 22.47% 18.66%
Free cash flow margin 26.93% 17.14% 21.18%
Return on equity 11.13% 12.33% 10.64%
Return on assets 1.33% 1.34% 1.13%
Return on invested capital 10.18% 13.08% 8.33%

Growth

Metric MTB RF Banks Regional median
Revenue growth (TTM) 1.00% 0.46% 6.61%
EPS growth (last fiscal year) 16.12% 19.17% —
Revenue growth, 5-year CAGR 16.06% 7.62% 12.30%
Net income growth, 5-year CAGR 16.11% 15.77% 9.71%

Health

Metric MTB RF Banks Regional median
Debt to equity 0.49 0.24 0.22
Current ratio 0.96 0.81 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MTB RF Banks Regional median
Dividend yield 4.05% 5.20% 3.75%
Payout ratio 0.29 0.34 0.27

Size

Metric MTB RF Banks Regional median
Market cap 31.58b 23.22b 921.07m

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