Prosperity Bancshares, Inc. (PB) vs Western Alliance Bancorporation (WAL)

Prosperity Bancshares, Inc. and Western Alliance Bancorporation are both Banks Regional companies. Prosperity Bancshares, Inc. and Western Alliance Bancorporation are of similar size ($8.3B and $8.2B). Western Alliance Bancorporation trades at the lower P/E: 8.7× against 11.7×. Western Alliance Bancorporation grew revenue faster over the last twelve months: 10.7% against 5.48%. Prosperity Bancshares, Inc. has the higher net margin (30.0% vs 16.9%) and the lower return on invested capital (7.14% vs 8.11%). Both pay a dividend; Prosperity Bancshares, Inc. yields more (3.63% vs 2.50%). Across the 19 metrics below, Western Alliance Bancorporation leads on 11 and Prosperity Bancshares, Inc. on 8.

Valuation

Metric PB WAL Banks Regional median
P/E 11.75 8.70 12.15
P/S 3.64 1.46 2.37
P/B 0.82 1.07 1.21
Price to free cash flow 11.23 n/m 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.78 1.70 2.27
Earnings yield 8.51% 11.49% 8.11%
Free cash flow yield 8.90% (19.73%) 8.98%

Profitability

Metric PB WAL Banks Regional median
Gross margin 74.11% 68.81% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 29.95% 16.92% 18.66%
Free cash flow margin 32.39% (28.87%) 21.18%
Return on equity 7.07% 12.94% 10.64%
Return on assets 1.37% 1.04% 1.13%
Return on invested capital 7.14% 8.11% 8.33%

Growth

Metric PB WAL Banks Regional median
Revenue growth (TTM) 5.48% 10.74% 6.61%
EPS growth (last fiscal year) 13.27% 23.13% —
Revenue growth, 5-year CAGR 6.39% 32.15% 12.30%
Net income growth, 5-year CAGR 0.52% 13.55% 9.71%

Health

Metric PB WAL Banks Regional median
Debt to equity 0.01 0.90 0.22
Current ratio 0.75 0.86 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric PB WAL Banks Regional median
Dividend yield 3.63% 2.50% 3.75%
Payout ratio 0.41 0.17 0.27

Size

Metric PB WAL Banks Regional median
Market cap 8.18b 8.32b 921.07m

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