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Commerce Bancshares Inc versus First Financial Bancorp. Head to Head Compare


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This is a head to head compare of Commerce Bancshares Inc (NASDAQ:CBSH) and First Financial Bancorp. (NASDAQ:FFBC) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.



Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.


Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
CBSH -8.6% +12.2% +21.9%
FFBC -7.3% +23.5% +38.0%

On a fundamental basis, we are looking at two exceptionally strong companies with star ratings near the top, so the head-to-head comparison will rely on a deep dive into specific metric comparisons. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Commerce Bancshares Inc has substantially higher revenue in the last year than First Financial Bancorp.. Raw revenue comps do not affect the head to head rating.
Revenue

Both CBSH and FFBC show positive earnings over the last year with the edge to CBSH.

Net Income


FFBC generates larger revenue per employee ($234,000) than CBSH ($234,000), but not enough to affect the comparison rating.

Revenue per Employee
($ Millions)


➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

First Financial Bancorp. generates $1.68 in revenue for every $1 of expense, very similar to Commerce Bancshares Inc's $1.61.

Revenue per Dollar of Expense


A nonperforming loan (NPL) is the sum of borrowed money upon which the debtor has not made his scheduled payments for at least 90 days. A nonperforming loan is either in default or close to being in default (Source: INVESTOPEDIA).FFBC shows 0.83% if its loans are "non-performing", massively higher than CBSH's 0.11%.

Non-performing Loans
over Total Loans


➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies are growing revenue. First Financial Bancorp. is growing revenue faster than Commerce Bancshares Inc but not by a notable amount.

Revenue Growth


For every $1 in revenue, the stock market prices in $5.42 in market cap for CBSH and $5.36 in market cap for FFBC.

Price to Sales

First Financial Bancorp. (NASDAQ:FFBC)
defeats
Commerce Bancshares Inc (NASDAQ:CBSH) : 58 to 42