Customers Bancorp (NYSE:CUBI) and First Western Financial (NASDAQ:MYFW) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares Customers Bancorp and First Western Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Customers Bancorp $451.76 million 1.27 $78.83 million $2.20 8.25
First Western Financial $61.05 million 1.60 $2.02 million N/A N/A

Customers Bancorp has higher revenue and earnings than First Western Financial.

Insider & Institutional Ownership

79.9% of Customers Bancorp shares are held by institutional investors. Comparatively, 31.3% of First Western Financial shares are held by institutional investors. 8.7% of Customers Bancorp shares are held 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Customers Bancorp and First Western Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Customers Bancorp 0 2 3 0 2.60
First Western Financial 0 1 1 0 2.50

Customers Bancorp currently has a consensus price target of $28.80, indicating a potential upside of 58.77%. First Western Financial has a consensus price target of $20.00, indicating a potential upside of 63.00%. Given First Western Financial’s higher possible upside, analysts plainly believe First Western Financial is more favorable than Customers Bancorp.

Profitability

This table compares Customers Bancorp and First Western Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Customers Bancorp 16.01% 13.10% 0.89%
First Western Financial 5.98% 3.74% 0.39%

Summary

Customers Bancorp beats First Western Financial on 9 of the 11 factors compared between the two stocks.

About Customers Bancorp

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to small and middle market businesses, not-for-profits, and consumers. The company accepts various deposit products, such as checking, savings, money market deposit, time deposit, individual retirement, and non-retail time deposit accounts, as well as certificates of deposit. Its loan products include commercial and industrial lending; small and middle market business banking, such as small business administration loans; multi-family and commercial real estate lending; and commercial loans to mortgage originators, as well as consumer lending products comprising mortgage and home equity lending. The company also offers private banking services; mobile phone banking, Internet banking, wire transfers, electronic bill payment, lock box, remote deposit capture, courier, merchant processing, cash vault, controlled disbursements, and positive pay services; and cash management services, such as account reconciliation, collections, and sweep accounts. It operates 13 full-service branches, as well as limited purpose offices in Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire; Manhattan and Melville, New York; and Philadelphia, Pennsylvania. Customers Bancorp, Inc. was founded in 1994 and is headquartered in Wyomissing, Pennsylvania.

About First Western Financial

First Western Financial, Inc., a financial holding company, through its subsidiaries, provides an integrated suite of wealth management services comprising private banking, personal trust, investment management, mortgage loans, and institutional asset management services. It operates through three segments: Wealth Management, Capital Management, and Mortgage. The Wealth Management segment provides deposit, loan, insurance, and trust and investment management advisory products and services. The Capital Management offers institutional investment management services; and acts as advisor of proprietary mutual funds. The Mortgage segment engages in soliciting, originating, and selling mortgage loans into the secondary market. The company serves entrepreneurs, professionals, and high-net worth individuals and their related philanthropic and business organizations through a network of boutique private trust bank offices in Colorado, Arizona, Wyoming, and California. First Western Financial, Inc. was founded in 2002 and is headquartered in Denver, Colorado.

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