WallStSmart

First Merchants Corporation Depository Shares (FRMEP)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 4078% more annual revenue ($26.65B vs $637.81M). FRMEP leads profitability with a 31.2% profit margin vs 29.3%. FRMEP trades at a lower P/E of 6.8x. USB earns a higher WallStSmart Score of 69/100 (B-).

FRMEP

Hold

39

out of 100

Grade: F

Growth: 4.0Profit: 6.5Value: 6.7Quality: 6.5
Piotroski: 6/9Altman Z: -0.11

USB

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: -0.36

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRMEP4 strengths · Avg: 9.5/10
P/E RatioValuation
6.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
31.2%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
22.6%8/10

Strong operational efficiency at 22.6%

USB6 strengths · Avg: 8.7/10
Operating MarginProfitability
37.8%10/10

Strong operational efficiency at 37.8%

Market CapQuality
$94.88B9/10

Large-cap with strong market position

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.34B8/10

Generating 1.3B in free cash flow

Areas to Watch

FRMEP4 concerns · Avg: 2.3/10
Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

Revenue GrowthGrowth
-2.5%2/10

Revenue declined 2.5%

EPS GrowthGrowth
-52.1%2/10

Earnings declined 52.1%

Altman Z-ScoreHealth
-0.112/10

Distress zone — elevated risk

USB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.234/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Debt/EquityHealth
1.203/10

Elevated debt levels

Altman Z-ScoreHealth
-0.362/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : FRMEP

The strongest argument for FRMEP centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 31.2% and operating margin at 22.6%.

Bull Case : USB

The strongest argument for USB centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 29.3% and operating margin at 37.8%.

Bear Case : FRMEP

The primary concerns for FRMEP are Return on Equity, Revenue Growth, EPS Growth.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

FRMEP profiles as a declining stock while USB is a value play — different risk/reward profiles.

USB carries more volatility with a beta of 1.00 — expect wider price swings.

USB is growing revenue faster at 4.6% — sustainability is the question.

USB generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

USB scores higher overall (69/100 vs 39/100), backed by strong 29.3% 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 (FRMEP) embody a compelling investment opportunity within the Midwest's financial services sector, supported by a well-established banking institution. The company offers a comprehensive suite of financial solutions, including commercial banking, consumer lending, and wealth management, designed to address the distinct needs of its diverse client base. First Merchants prioritizes community engagement and sustainable growth, showcasing a strong commitment to enhancing shareholder value while maintaining resilience and financial stability amid varying market conditions. This strategic focus makes First Merchants an appealing choice for institutional investors seeking reliable returns in an evolving economic landscape.

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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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