WallStSmart

HDFC Bank Limited ADR (HDB)vsMerchants Bancorp (MBIN)

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Smart Verdict

WallStSmart Research — data-driven comparison

HDFC Bank Limited ADR generates 504666% more annual revenue ($2.85T vs $563.69M). MBIN leads profitability with a 38.8% profit margin vs 26.2%. MBIN trades at a lower P/E of 11.3x. HDB earns a higher WallStSmart Score of 78/100 (B+).

HDB

Strong Buy

78

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 8.7Quality: 5.3
Piotroski: 3/9Altman Z: -0.14

MBIN

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 7.5Value: 5.7Quality: 5.5
Piotroski: 2/9Altman Z: 0.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDBUndervalued (+11.2%)

Margin of Safety

+11.2%

Fair Value

$36.29

Current Price

$25.79

$10.50 discount

UndervaluedFair: $36.29Overvalued
MBINSignificantly Overvalued (-81.2%)

Margin of Safety

-81.2%

Fair Value

$25.70

Current Price

$42.94

$17.24 premium

UndervaluedFair: $25.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HDB5 strengths · Avg: 8.8/10
Operating MarginProfitability
34.8%10/10

Strong operational efficiency at 34.8%

Market CapQuality
$130.27B9/10

Large-cap with strong market position

Profit MarginProfitability
26.2%9/10

Keeps 26 of every $100 in revenue as profit

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
26.4%8/10

Revenue surging 26.4% year-over-year

MBIN4 strengths · Avg: 10.0/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.8%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
52.0%10/10

Strong operational efficiency at 52.0%

Areas to Watch

HDB3 concerns · Avg: 2.7/10
Debt/EquityHealth
1.093/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
-0.142/10

Distress zone — elevated risk

MBIN4 concerns · Avg: 2.8/10
Market CapQuality
$1.96B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-17.6%2/10

Revenue declined 17.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : HDB

The strongest argument for HDB centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 26.2% and operating margin at 34.8%. Revenue growth of 26.4% demonstrates continued momentum.

Bull Case : MBIN

The strongest argument for MBIN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 38.8% and operating margin at 52.0%.

Bear Case : HDB

The primary concerns for HDB are Debt/Equity, Piotroski F-Score, Altman Z-Score.

Bear Case : MBIN

The primary concerns for MBIN are Market Cap, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Key Dynamics to Monitor

HDB profiles as a growth stock while MBIN is a declining play — different risk/reward profiles.

MBIN carries more volatility with a beta of 1.20 — expect wider price swings.

HDB is growing revenue faster at 26.4% — sustainability is the question.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HDB scores higher overall (78/100 vs 49/100), backed by strong 26.2% margins and 26.4% revenue growth. 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.

HDFC Bank Limited ADR

FINANCIAL SERVICES · BANKS - REGIONAL · USA

HDFC Bank Limited offers various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong and Dubai. The company is headquartered in Mumbai, India.

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Merchants Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Merchants Bancorp is the diversified bank holding company in the United States. The company is headquartered in Carmel, Indiana.

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