Head to Head Comparison: Customers Bancorp (CUBI) and Its Competitors

Customers Bancorp (NYSE:CUBI) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Customers Bancorp to similar businesses based on the strength of its institutional ownership, valuation, analyst recommendations, earnings, risk, dividends and profitability.

Profitability

This table compares Customers Bancorp and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Customers Bancorp	19.11%	13.73%	1.14%
Customers Bancorp Competitors	15.66%	9.44%	0.93%

Analyst Ratings

This is a summary of recent recommendations for Customers Bancorp and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Customers Bancorp	1	4	6	1	2.58
Customers Bancorp Competitors	7463	30186	27757	1457	2.35

Customers Bancorp currently has a consensus price target of $94.36, suggesting a potential upside of 10.50%. As a group, “Banks” companies have a potential upside of 15.47%. Given Customers Bancorp’s peers higher possible upside, analysts clearly believe Customers Bancorp has less favorable growth aspects than its peers.

Insider and Institutional Ownership

89.3% of Customers Bancorp shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 10.4% of Customers Bancorp shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Customers Bancorp has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Customers Bancorp’s peers have a beta of 0.52, meaning that their average stock price is 48% less volatile than the S&P 500.

Valuation and Earnings

This table compares Customers Bancorp and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Customers Bancorp	$1.48 billion	$224.09 million	10.35
Customers Bancorp Competitors	$9.95 billion	$2.42 billion	17.38

Customers Bancorp’s peers have higher revenue and earnings than Customers Bancorp. Customers Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Customers Bancorp beats its peers on 9 of the 13 factors compared.

Customers Bancorp Company Profile

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses. The company provides deposit banking products, which includes commercial and consumer checking, non-interest-bearing and interest-bearing demand, MMDA, savings, and time deposit accounts. Its lending business offers commercial and industrial, commercial real estate, and multifamily and residential mortgage loans; SBA lending and financing; specialty lending includes fund finance, real estate specialty finance, technology and venture, and healthcare and financial institutions group; commercial loans to mortgage companies, and commercial equipment financing; and fund finance, such as variable rate loans secured by collateral pools to private debt funds; and cash management services. In addition, the company provides digital banking including Banking-as-a-Service to fintech companies, payments and treasury services to businesses, and consumer loans through fintech companies and the TassatPay, a blockchain-based instant B2B payments platform which offers instant payments including over-the-counter desks, exchanges, liquidity providers, market makers, funds, and other B2B verticals. Further, it offers mobile phone and internet banking, wire transfers, electronic bill payment, lock box, remote deposit capture, courier, merchant processing, cash vault, controlled disbursements, positive pay, and cash management services, such as account reconciliation, collections, and sweep accounts. The company was incorporated in 2010 and is headquartered in West Reading, Pennsylvania.