Customers Bancorp (NYSE:CUBI) and Its Competitors Critical Survey

Customers Bancorp (NYSE: CUBI) is one of 310 publicly-traded companies in the “Banks” industry, but how does it compare to its rivals? We will compare Customers Bancorp to similar companies based on the strength of its valuation, analyst recommendations, profitability, risk, institutional ownership, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Customers Bancorp and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Customers Bancorp 0 2 2 0 2.50
Customers Bancorp Competitors 2424 8745 8678 370 2.35

Customers Bancorp presently has a consensus target price of $42.33, suggesting a potential upside of 42.15%. As a group, “Banks” companies have a potential downside of 11.34%. Given Customers Bancorp’s stronger consensus rating and higher probable upside, research analysts clearly believe Customers Bancorp is more favorable than its rivals.

Risk & Volatility

Customers Bancorp has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Customers Bancorp’s rivals have a beta of 0.78, meaning that their average stock price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

87.8% of Customers Bancorp shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are owned by institutional investors. 8.7% of Customers Bancorp shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Customers Bancorp 19.75% 15.38% 1.02%
Customers Bancorp Competitors 18.21% 8.21% 0.92%

Valuation & Earnings

This table compares Customers Bancorp and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Customers Bancorp $345.70 million $78.70 million 15.43
Customers Bancorp Competitors $5.58 billion $833.70 million 386.68

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

Summary

Customers Bancorp beats its rivals on 7 of the 13 factors compared.

Customers Bancorp Company Profile

Customers Bancorp, Inc. (Customers Bancorp) is a bank holding company engaged in banking activities through its subsidiary, Customers Bank (the Bank). The Bank provides financial products and services to small and middle market businesses, not-for-profits, and consumers through its branches and offices in Southeastern Pennsylvania (Bucks, Berks, Chester, Delaware and Philadelphia Counties), Rye Brook, Melville and New York, New York (Westchester, Suffolk and New York Counties), Hamilton, New Jersey (Mercer County), Providence, Rhode Island (Providence County), Portsmouth, New Hampshire (Rockingham County) and Boston, Massachusetts (Suffolk County). The Bank also provides liquidity to the mortgage market nationwide through the operation of its loans to mortgage banking companies. The Bank offers a range of traditional loan and deposit banking products, and financial services. Customers Bank offers a range of lending products.

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