Prosperity Bancshares, Inc. (PB) vs Valley National Bancorp (VLY)

Prosperity Bancshares, Inc. and Valley National Bancorp are both Banks Regional companies. Prosperity Bancshares, Inc. is the larger, with a market value of $8.1B against $7.1B — 1.2× the size. Valley National Bancorp trades at the lower P/E: 10.6× against 11.7×. Prosperity Bancshares, Inc. grew revenue faster over the last twelve months: 5.48% against 1.16%. Prosperity Bancshares, Inc. has the higher net margin (30.0% vs 18.7%) and the higher return on invested capital (7.14% vs 5.61%). Both pay a dividend; Prosperity Bancshares, Inc. yields more (3.54% vs 3.47%). Across the 19 metrics below, Prosperity Bancshares, Inc. leads on 11 and Valley National Bancorp on 8.

Valuation

Metric PB VLY Banks Regional median
P/E 11.75 10.57 11.98
P/S 3.64 1.97 2.34
P/B 0.82 0.93 1.19
Price to free cash flow 11.24 12.55 10.63
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.51% 9.46% 8.23%
Free cash flow yield 8.90% 7.97% 9.08%

Profitability

Metric PB VLY Banks Regional median
Gross margin 74.11% 60.51% 69.55%
Operating margin 0.00% 0.00% 0.00%
Net margin 29.95% 18.66% 18.66%
Free cash flow margin 32.39% 15.72% 21.11%
Return on equity 7.07% 8.98% 10.65%
Return on assets 1.37% 1.03% 1.13%
Return on invested capital 7.14% 5.61% 8.35%

Growth

Metric PB VLY Banks Regional median
Revenue growth (TTM) 5.48% 1.16% 6.98%
EPS growth (last fiscal year) 13.27% 46.38% 18.88%
Revenue growth, 5-year CAGR 6.39% 17.40% 12.38%
Net income growth, 5-year CAGR 0.52% 8.53% 9.71%

Health

Metric PB VLY Banks Regional median
Debt to equity 0.01 0.34 0.22
Current ratio 0.75 0.96 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric PB VLY Banks Regional median
Dividend yield 3.54% 3.47% 2.57%
Payout ratio 0.42 0.37 0.30

Size

Metric PB VLY Banks Regional median
Market cap 8.11b 7.05b 913.33m

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