Customers Bancorp (NYSE: CUBI) and Deutsche Bank (NYSE:DB) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

87.8% of Customers Bancorp shares are held by institutional investors. Comparatively, 20.9% of Deutsche Bank shares are held by institutional investors. 8.7% of Customers Bancorp shares are held 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Customers Bancorp and Deutsche Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Customers Bancorp 0 2 2 0 2.50
Deutsche Bank 4 6 1 0 1.73

Customers Bancorp currently has a consensus price target of $42.33, indicating a potential upside of 42.34%. Deutsche Bank has a consensus price target of $18.03, indicating a potential downside of 2.86%. Given Customers Bancorp’s stronger consensus rating and higher probable upside, research analysts clearly believe Customers Bancorp is more favorable than Deutsche Bank.

Profitability

This table compares Customers Bancorp and Deutsche Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Customers Bancorp 9.01% 2.40% 0.29%
Deutsche Bank -0.42% 3.65% 0.16%

Dividends

Deutsche Bank pays an annual dividend of $0.21 per share and has a dividend yield of 1.1%. Customers Bancorp does not pay a dividend. Deutsche Bank pays out -35.6% of its earnings in the form of a dividend.

Volatility and Risk

Customers Bancorp has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Deutsche Bank has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Valuation & Earnings

This table compares Customers Bancorp and Deutsche Bank’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Customers Bancorp $345.70 million 2.65 $78.70 million $2.05 14.51
Deutsche Bank $44.58 billion 0.86 -$1.55 billion ($0.59) -31.46

Customers Bancorp has higher earnings, but lower revenue than Deutsche Bank. Deutsche Bank is trading at a lower price-to-earnings ratio than Customers Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Customers Bancorp beats Deutsche Bank on 11 of the 16 factors compared between the two stocks.

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.

Deutsche Bank Company Profile

Deutsche Bank AG is a bank and holding company for its subsidiaries. The Company offers a range of investment, financial and related products and services to private individuals, corporate entities and institutional clients. It operates through six divisions: Global Markets, which offers financial products, including trading and hedging services to institutions and corporate clients; Corporate & Investment Banking, which brings together its commercial banking, corporate finance and transaction banking capability; Private, Wealth and Commercial Clients, which combines its capability in private and commercial banking, as well as in wealth management solutions; Deutsche Asset Management, whose investment capabilities span both active and passive strategies and an array of asset classes, including equities, fixed income, real estate and sustainable investments; Postbank, which is a German financial service provider for retail, business and corporate clients, and Non-Core Operations Unit.

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