Financial Analysis: Customers Bancorp (CUBI) vs. Its Peers

Customers Bancorp (NYSE:CUBI) is one of 920 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare Customers Bancorp to similar businesses based on the strength of its institutional ownership, dividends, profitability, earnings, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Customers Bancorp and its competitors, 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	7449	30142	27691	1450	2.35

Customers Bancorp presently has a consensus target price of $94.36, suggesting a potential upside of 12.17%. As a group, “Banks” companies have a potential upside of 17.36%. Given Customers Bancorp’s competitors higher probable upside, analysts plainly believe Customers Bancorp has less favorable growth aspects than its competitors.

Profitability

This table compares Customers Bancorp and its competitors’ 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	15.48%	9.50%	0.93%

Volatility & Risk

Customers Bancorp has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Customers Bancorp’s competitors have a beta of 0.60, indicating that their average stock price is 40% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Customers Bancorp	$1.48 billion	$224.09 million	10.20
Customers Bancorp Competitors	$37.78 billion	$2.41 billion	19.02

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

Insider and Institutional Ownership

89.3% of Customers Bancorp shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are owned by institutional investors. 10.4% of Customers Bancorp shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

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

About Customers Bancorp

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.