Valley National Bancorp (VLY) vs Western Alliance Bancorporation (WAL)

Valley National Bancorp and Western Alliance Bancorporation are both Banks Regional companies. Valley National Bancorp and Western Alliance Bancorporation are of similar size ($8.2B and $7.7B). Western Alliance Bancorporation trades at the lower P/E: 8.4× against 11.0×. Western Alliance Bancorporation grew revenue faster over the last twelve months: 9.87% against 3.27%. Valley National Bancorp has the higher net margin (19.6% vs 17.0%) and the lower return on invested capital (5.93% vs 8.47%). Both pay a dividend; Valley National Bancorp yields more (3.12% vs 2.21%). Across the 18 metrics below, Valley National Bancorp leads on 9 and Western Alliance Bancorporation on 9.

Valuation

Metric VLY WAL Banks Regional median
P/E 11.02 8.37 12.02
P/S 2.16 1.41 2.36
P/B 1.03 1.07 1.23
Price to free cash flow 13.93 n/m 10.60
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.07% 11.94% 8.21%
Free cash flow yield 7.18% (3.48%) 9.23%

Profitability

Metric VLY WAL Banks Regional median
Gross margin 61.80% 69.52% 69.81%
Operating margin 0.00% 0.00% 0.00%
Net margin 19.63% 17.00% 18.82%
Free cash flow margin 0.00% (4.92%) 17.97%
Return on equity 9.50% 13.03% 10.28%
Return on assets 1.08% 1.04% 1.13%
Return on invested capital 5.93% 8.47% 8.45%

Growth

Metric VLY WAL Banks Regional median
Revenue growth (TTM) 3.27% 9.87% 6.37%
EPS growth (last fiscal year) 46.38% 23.13% 18.85%
Revenue growth, 5-year CAGR 17.40% 32.15% 12.65%
Net income growth, 5-year CAGR 8.53% 13.55% 9.81%

Health

Metric VLY WAL Banks Regional median
Debt to equity 0.34 0.84 0.17
Current ratio 0.95 0.86 0.93
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric VLY WAL Banks Regional median
Dividend yield 3.12% 2.21% 2.49%
Payout ratio 0.35 0.19 0.29

Size

Metric VLY WAL Banks Regional median
Market cap 7.74b 8.16b 934.85m

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