Reviewing Customers Bancorp (NYSE:CUBI) & Its Competitors

Customers Bancorp (NYSE: CUBI) is one of 314 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Customers Bancorp to related businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Analyst Ratings

This is a breakdown of current ratings and target prices for Customers Bancorp and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Customers Bancorp 0 3 2 0 2.40
Customers Bancorp Competitors 2486 9028 8990 378 2.35

Customers Bancorp currently has a consensus target price of $40.00, suggesting a potential upside of 29.74%. As a group, “Banks” companies have a potential downside of 4.57%. Given Customers Bancorp’s stronger consensus rating and higher possible upside, research analysts plainly believe Customers Bancorp is more favorable than its peers.

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 18.64% 14.11% 0.94%
Customers Bancorp Competitors 17.51% 8.40% 0.95%

Institutional and Insider Ownership

86.7% 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 insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Customers Bancorp and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Customers Bancorp $451.76 million $78.83 million 15.34
Customers Bancorp Competitors $5.65 billion $755.73 million 404.50

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.

Risk and Volatility

Customers Bancorp has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Customers Bancorp’s peers have a beta of 0.89, suggesting that their average share price is 11% less volatile than the S&P 500.

Summary

Customers Bancorp peers beat Customers Bancorp on 8 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.

Receive News & Ratings for Customers Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Customers Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply