HESM vs. MBIN

Last updated Jun 4, 2026

HESM (Hess Midstream LP) and MBIN (Merchants Bancorp) are both stocks. HESM operates in Oil & Gas Midstream (Energy), while MBIN operates in Banks - Regional (Financial Services). Over the past 5 years, HESM returned 17.03%/yr vs 10.96%/yr for MBIN. At a 0.25 correlation, their price movements are largely independent.

Performance

HESM vs. MBIN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Hess Midstream LP (HESM) and Merchants Bancorp (MBIN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HESM achieves a 16.29% return, which is significantly lower than MBIN's 34.11% return.

HESM

• 1D: 0.73%
• 1M: -0.63%
• YTD: 16.29%
• 6M: 17.48%
• 1Y: 9.64%
• 3Y*: 19.11%
• 5Y*: 17.03%
• 10Y*: —

MBIN

• 1D: -2.88%
• 1M: -0.76%
• YTD: 34.11%
• 6M: 32.92%
• 1Y: 44.75%
• 3Y*: 24.06%
• 5Y*: 10.96%
• 10Y*: —

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

HESM vs. MBIN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HESM Hess Midstream LP	16.29%	0.56%	26.41%	14.36%	16.62%	52.91%	-5.29%	43.83%	-8.61%	-1.28%
MBIN Merchants Bancorp	34.11%	-5.51%	-13.59%	77.01%	-22.06%	72.80%	42.55%	0.30%	2.43%	17.43%

Correlation

The correlation between HESM and MBIN is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.03
Correlation (3Y) Calculated over the trailing 3-year period	0.18
Correlation (5Y) Calculated over the trailing 5-year period	0.23
Correlation (All Time) Calculated using the full available price history since Oct 30, 2017	0.25

Over the past year, the correlation between HESM and MBIN has dropped to 0.03 - well below their long-term average of 0.25, suggesting their price drivers have been diverging.

Fundamentals

Market Cap HESM : $4.97B MBIN : $2.10B
EPS HESM : $2.89 MBIN : $4.97
PE Ratio HESM : 13.31 MBIN : 9.17
PS Ratio HESM : 3.02 MBIN : 1.58
PB Ratio HESM : 13.26 MBIN : 0.90
Total Revenue (TTM) HESM : $1.63B MBIN : $1.32B
Gross Profit (TTM) HESM : $1.13B MBIN : $423.13M
EBITDA (TTM) HESM : $1.24B MBIN : $188.84M

Return for Risk

HESM vs. MBIN — Risk / Return Rank

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

HESM

HESM Risk / Return Rank: 49
HESM Sharpe Ratio Rank: 54
HESM Sortino Ratio Rank: 46
HESM Omega Ratio Rank: 46
HESM Calmar Ratio Rank: 49
HESM Martin Ratio Rank: 49

MBIN

MBIN Risk / Return Rank: 75
MBIN Sharpe Ratio Rank: 77
MBIN Sortino Ratio Rank: 72
MBIN Omega Ratio Rank: 72
MBIN Calmar Ratio Rank: 78
MBIN Martin Ratio Rank: 76

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.

HESM vs. MBIN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Hess Midstream LP (HESM) and Merchants Bancorp (MBIN). 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.

	HESM	MBIN	Difference
Sharpe ratio Return per unit of total volatility	0.40	1.23	-0.83
Sortino ratio Return per unit of downside risk	0.68	1.82	-1.14
Omega ratio Gain probability vs. loss probability	1.09	1.24	-0.15
Calmar ratio Return relative to maximum drawdown	0.38	2.37	-2.00
Martin ratio Return relative to average drawdown	0.76	5.30	-4.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HESM vs. MBIN - Sharpe Ratio Comparison

The current HESM Sharpe Ratio is 0.40, which is lower than the MBIN Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of HESM and MBIN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HESM	MBIN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.40	1.23	-0.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.63	0.31	+0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.48	-0.15

Drawdowns

HESM vs. MBIN - Drawdown Comparison

The maximum HESM drawdown since its inception was -75.16%, which is greater than MBIN's maximum drawdown of -53.77%. Use the drawdown chart below to compare losses from any high point for HESM and MBIN.

Drawdown Indicators

	HESM	MBIN	Difference
Max Drawdown Largest peak-to-trough decline	-75.16%	-53.77%	-21.39%
Max Drawdown (1Y) Largest decline over 1 year	-25.78%	-18.94%	-6.84%
Max Drawdown (3Y) Largest decline over 3 years	-25.78%	-43.94%	+18.16%
Max Drawdown (5Y) Largest decline over 5 years	-28.72%	-43.94%	+15.22%
Current Drawdown Current decline from peak	-5.55%	-11.73%	+6.18%
Average Drawdown Average peak-to-trough decline	-11.79%	-19.93%	+8.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.65%	8.46%	+4.19%

Volatility

HESM vs. MBIN - Volatility Comparison

Hess Midstream LP (HESM) has a higher volatility of 8.24% compared to Merchants Bancorp (MBIN) at 6.67%. This indicates that HESM's price experiences larger fluctuations and is considered to be riskier than MBIN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HESM	MBIN	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.24%	6.67%	+1.57%
Volatility (6M) Calculated over the trailing 6-month period	15.00%	27.27%	-12.27%
Volatility (1Y) Calculated over the trailing 1-year period	24.20%	36.59%	-12.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.36%	35.97%	-8.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.86%	40.23%	-1.37%

Dividends

HESM vs. MBIN - Dividend Comparison

HESM's dividend yield for the trailing twelve months is around 7.89%, more than MBIN's 0.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
HESM Hess Midstream LP	7.89%	8.41%	7.12%	7.50%	7.30%	6.93%	8.86%	6.89%	8.00%	2.93%
MBIN Merchants Bancorp	0.90%	1.17%	0.99%	0.75%	1.15%	0.76%	1.16%	1.42%	1.20%	0.25%

Financials

HESM vs. MBIN - Profitability Comparison

The chart below illustrates the profitability comparison between Hess Midstream LP and Merchants Bancorp over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

HESM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Hess Midstream LP reported a gross profit of 246.00M and revenue of 390.10M. Therefore, the gross margin over that period was 63.1%.

MBIN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Merchants Bancorp reported a gross profit of 0.00 and revenue of 270.51M. Therefore, the gross margin over that period was 0.0%.

HESM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Hess Midstream LP reported an operating income of 238.10M and revenue of 390.10M, resulting in an operating margin of 61.0%.

MBIN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Merchants Bancorp reported an operating income of 0.00 and revenue of 270.51M, resulting in an operating margin of 0.0%.

HESM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Hess Midstream LP reported a net income of 87.60M and revenue of 390.10M, resulting in a net margin of 22.5%.

MBIN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Merchants Bancorp reported a net income of 67.73M and revenue of 270.51M, resulting in a net margin of 25.0%.

Frequently Asked Questions

Can I hold both HESM and MBIN in my portfolio?

HESM and MBIN have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HESM or MBIN?

HESM has higher volatility (8.24%) compared to MBIN (6.67%). In terms of maximum drawdown, HESM dropped -75.16% vs MBIN's -53.77%.

Which has better risk-adjusted returns?

MBIN currently has the higher Sharpe Ratio (1.23 vs 0.40), 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.