WallStSmart

Merchants Bancorp (MBIN)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 4575% more annual revenue ($26.35B vs $563.69M). MBIN leads profitability with a 38.8% profit margin vs 28.7%. USB trades at a lower P/E of 11.3x. USB earns a higher WallStSmart Score of 75/100 (B).

MBIN

Hold

49

out of 100

Grade: D+

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

USB

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MBINSignificantly Overvalued (-81.2%)

Margin of Safety

-81.2%

Fair Value

$25.70

Current Price

$42.94

$17.24 premium

UndervaluedFair: $25.70Overvalued
USBUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$214.00

Current Price

$51.89

$162.11 discount

UndervaluedFair: $214.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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%

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$81.01B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
24.7%8/10

Earnings expanding 24.7% YoY

Areas to Watch

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%

USB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

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%.

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 : 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.

Bear Case : USB

The primary concerns for USB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

MBIN profiles as a declining stock while USB is a mature play — different risk/reward profiles.

MBIN carries more volatility with a beta of 1.20 — 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 49/100), 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.

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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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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