FRME vs. AX

Last updated Jun 23, 2026

FRME (First Merchants Corporation) and AX (Axos Financial, Inc.) are both stocks. Both operate in the Banks - Regional industry within the Financial Services sector. Over the past 5 years, FRME returned 2.87%/yr vs 13.85%/yr for AX. A 0.74 correlation means they provide meaningful diversification when combined.

Performance

FRME vs. AX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Merchants Corporation (FRME) and Axos Financial, Inc. (AX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FRME achieves a 11.97% return, which is significantly higher than AX's 2.74% return.

FRME

• 1D: 1.15%
• 1M: 3.57%
• YTD: 11.97%
• 6M: 8.52%
• 1Y: 18.95%
• 3Y*: 18.76%
• 5Y*: 2.87%
• 10Y*: 8.59%

AX

• 1D: 0.51%
• 1M: 2.85%
• YTD: 2.74%
• 6M: -0.41%
• 1Y: 22.88%
• 3Y*: 34.18%
• 5Y*: 13.85%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FRME vs. AX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FRME First Merchants Corporation	11.97%	-2.55%	11.82%	-5.82%	1.11%	14.99%	-6.93%	24.62%	-23.40%
AX Axos Financial, Inc.	2.74%	23.35%	27.93%	42.86%	-31.64%	48.97%	23.94%	20.25%	-27.83%

Correlation

The correlation between FRME and AX is 0.73, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (All Time) Calculated using the full available price history since Oct 1, 2018	0.74

The correlation between FRME and AX has been stable across timeframes, ranging from 0.73 to 0.75 - a consistent structural relationship.

Fundamentals

Market Cap FRME : $2.51B AX : $5.11B
EPS FRME : $3.40 AX : $8.22
PE Ratio FRME : 12.10 AX : 10.78
PEG Ratio FRME : 14.28 AX : 0.49
PS Ratio FRME : 2.30 AX : 10.70
PB Ratio FRME : 0.94 AX : 1.67
Total Revenue (TTM) FRME : $1.05B AX : $479.42M
Gross Profit (TTM) FRME : $484.80M AX : $302.17M
EBITDA (TTM) FRME : $217.48M AX : $826.17M

Return for Risk

FRME vs. AX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FRME

FRME Risk / Return Rank: 64
FRME Sharpe Ratio Rank: 67
FRME Sortino Ratio Rank: 61
FRME Omega Ratio Rank: 59
FRME Calmar Ratio Rank: 66
FRME Martin Ratio Rank: 66

AX

AX Risk / Return Rank: 63
AX Sharpe Ratio Rank: 65
AX Sortino Ratio Rank: 58
AX Omega Ratio Rank: 60
AX Calmar Ratio Rank: 66
AX Martin Ratio Rank: 65

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FRME vs. AX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Merchants Corporation (FRME) and Axos Financial, Inc. (AX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FRME	AX	Difference
Sharpe ratio: Return per unit of total volatility	0.78	0.72	+0.06
Sortino ratio: Return per unit of downside risk	1.24	1.11	+0.13
Omega ratio: Gain probability vs. loss probability	1.15	1.16	-0.01
Calmar ratio: Return relative to maximum drawdown	1.21	1.21	0.00
Martin ratio: Return relative to average drawdown	2.51	2.39	+0.13

FRME vs. AX - Sharpe Ratio Comparison

The current FRME Sharpe Ratio is 0.78, which is comparable to the AX Sharpe Ratio of 0.72. The chart below compares the historical Sharpe Ratios of FRME and AX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FRME vs. AX - Drawdown Comparison

The maximum FRME drawdown since its inception was -81.31%, which is greater than AX's maximum drawdown of -59.57%. Use the drawdown chart below to compare losses from any high point for FRME and AX.

Drawdown Indicators

	FRME	AX	Difference
Max Drawdown Largest peak-to-trough decline	-81.31%	-59.57%	-21.74%
Max Drawdown (1Y) Largest decline over 1 year	-15.73%	-19.04%	+3.31%
Max Drawdown (3Y) Largest decline over 3 years	-23.94%	-34.92%	+10.98%
Max Drawdown (5Y) Largest decline over 5 years	-43.72%	-46.31%	+2.59%
Max Drawdown (10Y) Largest decline over 10 years	-53.03%	—	—
Current Drawdown Current decline from peak	-3.81%	-12.37%	+8.56%
Average Drawdown Average peak-to-trough decline	-19.22%	-20.51%	+1.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.55%	9.61%	-2.06%

Volatility

FRME vs. AX - Volatility Comparison

First Merchants Corporation (FRME) has a higher volatility of 7.32% compared to Axos Financial, Inc. (AX) at 6.48%. This indicates that FRME's price experiences larger fluctuations and is considered to be riskier than AX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FRME	AX	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.32%	6.48%	+0.84%
Volatility (6M) Calculated over the trailing 6-month period	16.56%	24.17%	-7.61%
Volatility (1Y) Calculated over the trailing 1-year period	24.60%	32.17%	-7.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.93%	40.68%	-10.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.81%	44.10%	-11.29%

Dividends

FRME vs. AX - Dividend Comparison

FRME's dividend yield for the trailing twelve months is around 3.52%, while AX has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AX Axos Financial, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FRME First Merchants Corporation	3.52%	3.82%	3.48%	3.61%	3.04%	2.70%	2.78%	2.40%	2.45%	1.64%	1.43%	1.61%

Financials

FRME vs. AX - Profitability Comparison

The chart below illustrates the profitability comparison between First Merchants Corporation and Axos Financial, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

FRME - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, First Merchants Corporation reported a gross profit of 0.00 and revenue of 248.57M. Therefore, the gross margin over that period was 0.0%.

AX - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Axos Financial, Inc. reported a gross profit of -657.74M and revenue of -1.06B. Therefore, the gross margin over that period was 62.2%.

FRME - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, First Merchants Corporation reported an operating income of 0.00 and revenue of 248.57M, resulting in an operating margin of 0.0%.

AX - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Axos Financial, Inc. reported an operating income of -325.40M and revenue of -1.06B, resulting in an operating margin of 30.8%.

FRME - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, First Merchants Corporation reported a net income of 28.16M and revenue of 248.57M, resulting in a net margin of 11.3%.

AX - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Axos Financial, Inc. reported a net income of 124.68M and revenue of -1.06B, resulting in a net margin of -11.8%.

Frequently Asked Questions

Can I hold both FRME and AX in my portfolio?

FRME and AX have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FRME or AX?

FRME has higher volatility (7.32%) compared to AX (6.48%). In terms of maximum drawdown, FRME dropped -81.31% vs AX's -59.57%.

Which has better risk-adjusted returns?

FRME currently has the higher Sharpe Ratio (0.78 vs 0.72), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.