Simmons First National Corporation (SFNC) vs Towne Bank (TOWN)

Simmons First National Corporation and Towne Bank are both Banks Regional companies. Simmons First National Corporation and Towne Bank are of similar size ($3.4B and $3.4B). Simmons First National Corporation has negative trailing earnings, so its P/E is not meaningful; Towne Bank trades at 10.2×. Towne Bank grew revenue faster over the last twelve months: 36.6% against −56.9%. Towne Bank has the higher net margin (22.3% vs −56.5%) and the higher return on invested capital (19.6% vs −6.96%). Both pay a dividend; Simmons First National Corporation yields more (4.69% vs 3.78%). Across the 19 metrics below, Towne Bank leads on 13 and Simmons First National Corporation on 6.

Valuation

Metric SFNC TOWN Banks Regional median
P/E n/m 10.16 12.15
P/S 5.44 2.34 2.37
P/B 0.97 1.12 1.21
Price to free cash flow 6.82 25.31 10.80
EV/EBITDA n/m n/m —
EV/Sales 6.50 1.16 2.27
Earnings yield (10.93%) 9.85% 8.11%
Free cash flow yield 14.65% 3.95% 8.98%

Profitability

Metric SFNC TOWN Banks Regional median
Gross margin 27.41% 79.29% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin (56.54%) 22.33% 18.66%
Free cash flow margin 79.79% 9.26% 21.18%
Return on equity (9.94%) 12.18% 10.64%
Return on assets (1.36%) 1.56% 1.13%
Return on invested capital (6.96%) 19.56% 8.33%

Growth

Metric SFNC TOWN Banks Regional median
Revenue growth (TTM) (56.85%) 36.61% 6.61%
EPS growth (last fiscal year) (343.80%) 2.79% —
Revenue growth, 5-year CAGR (8.88%) 8.48% 12.30%
Net income growth, 5-year CAGR 0.00% 3.10% 9.71%

Health

Metric SFNC TOWN Banks Regional median
Debt to equity 0.36 0.04 0.22
Current ratio 0.93 0.90 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric SFNC TOWN Banks Regional median
Dividend yield 4.69% 3.78% 3.75%
Payout ratio 0.37 0.39 0.27

Size

Metric SFNC TOWN Banks Regional median
Market cap 3.38b 3.36b 921.07m

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