WallStSmart

First Merchants Corporation Depository Shares (FRMEP)vsMizuho Financial Group Inc. (MFG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Mizuho Financial Group Inc. generates 626026% more annual revenue ($4.02T vs $641.70M). FRMEP leads profitability with a 35.2% profit margin vs 26.1%. FRMEP trades at a lower P/E of 6.7x. MFG earns a higher WallStSmart Score of 74/100 (B).

FRMEP

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 7.5Value: 7.0Quality: 5.0
Piotroski: 5/9Altman Z: -0.11

MFG

Strong Buy

74

out of 100

Grade: B

Growth: 8.0Profit: 7.5Value: 10.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRMEPUndervalued (+1.5%)

Margin of Safety

+1.5%

Fair Value

$25.91

Current Price

$25.60

$0.31 discount

UndervaluedFair: $25.91Overvalued
MFGUndervalued (+42.4%)

Margin of Safety

+42.4%

Fair Value

$17.51

Current Price

$7.81

$9.70 discount

UndervaluedFair: $17.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRMEP4 strengths · Avg: 10.0/10
P/E RatioValuation
6.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
35.2%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
42.7%10/10

Strong operational efficiency at 42.7%

MFG6 strengths · Avg: 9.0/10
Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
36.3%10/10

Strong operational efficiency at 36.3%

Market CapQuality
$92.84B9/10

Large-cap with strong market position

Profit MarginProfitability
26.1%9/10

Keeps 26 of every $100 in revenue as profit

PEG RatioValuation
0.868/10

Growing faster than its price suggests

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Areas to Watch

FRMEP3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

EPS GrowthGrowth
-10.9%2/10

Earnings declined 10.9%

Altman Z-ScoreHealth
-0.112/10

Distress zone — elevated risk

MFG0 concerns · Avg: 0/10

No major concerns identified

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 35.2% and operating margin at 42.7%.

Bull Case : MFG

The strongest argument for MFG centers on Price/Book, Operating Margin, Market Cap. Profitability is solid with margins at 26.1% and operating margin at 36.3%. PEG of 0.86 suggests the stock is reasonably priced for its growth.

Bear Case : FRMEP

The primary concerns for FRMEP are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : MFG

No major red flags identified for MFG, but monitor valuation.

Key Dynamics to Monitor

FRMEP profiles as a declining stock while MFG is a mature play — different risk/reward profiles.

FRMEP carries more volatility with a beta of 0.91 — expect wider price swings.

MFG is growing revenue faster at 5.5% — sustainability is the question.

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

Bottom Line

MFG scores higher overall (74/100 vs 41/100), backed by strong 26.1% 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 →

Mizuho Financial Group Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Mizuho Financial Group, Inc. engages in banking, trusts, securities and other businesses related to financial services in Japan, America, Europe, Asia / Oceania and internationally. The company is headquartered in Tokyo, Japan.

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