First Merchants Corporation Depository Shares (FRMEP)vsU.S. Bancorp (USB)
FRMEP
First Merchants Corporation Depository Shares
$25.60
+0.23%
FINANCIAL SERVICES · Cap: $2.42B
USB
U.S. Bancorp
$51.89
-0.58%
FINANCIAL SERVICES · Cap: $81.01B
Smart Verdict
WallStSmart Research — data-driven comparison
U.S. Bancorp generates 4007% more annual revenue ($26.35B vs $641.70M). FRMEP leads profitability with a 35.2% profit margin vs 28.7%. FRMEP trades at a lower P/E of 6.7x. USB earns a higher WallStSmart Score of 75/100 (B).
FRMEP
Hold41
out of 100
Grade: D
USB
Strong Buy75
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+1.5%
Fair Value
$25.91
Current Price
$25.60
$0.31 discount
Margin of Safety
+75.8%
Fair Value
$214.00
Current Price
$51.89
$162.11 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 42.7%
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 39.3%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Earnings expanding 24.7% YoY
Areas to Watch
Revenue declined 4.6%
Earnings declined 10.9%
Distress zone — elevated risk
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : FRMEP
The strongest argument for FRMEP centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 35.2% and operating margin at 42.7%.
Bull Case : USB
The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 39.3%.
Bear Case : FRMEP
The primary concerns for FRMEP are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : USB
The primary concerns for USB are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
FRMEP profiles as a declining stock while USB is a mature play — different risk/reward profiles.
USB carries more volatility with a beta of 1.04 — expect wider price swings.
USB is growing revenue faster at 5.3% — sustainability is the question.
USB generates stronger free cash flow (2.8B), providing more financial flexibility.
Bottom Line
USB scores higher overall (75/100 vs 41/100), backed by strong 28.7% margins. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
First Merchants Corporation Depository Shares
FINANCIAL SERVICES · BANKS - REGIONAL · USA
First Merchants Corporation Depository Shares (ticker: FRMEP) represents a notable investment avenue in the Midwest's financial services landscape, leveraging its strong position as a leading regional bank. The company is adept in commercial banking, consumer lending, and wealth management, providing a diverse range of products tailored to meet the needs of its clientele. With a focus on strategic growth and operational resilience, First Merchants demonstrates a commitment to community-focused banking while prioritizing shareholder value. Its consistent financial performance across varying economic conditions reinforces its attractiveness to institutional investors.
Visit Website →U.S. Bancorp
FINANCIAL SERVICES · BANKS - REGIONAL · USA
U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.
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