Customers Bancorp (NYSE:CUBI) versus East West Bancorp (EWBC) Head-To-Head Review
Customers Bancorp (NYSE: CUBI) and East West Bancorp (NASDAQ:EWBC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitabiliy, valuation, institutional ownership, analyst recommendations, risk and dividends.
Earnings & Valuation
This table compares Customers Bancorp and East West Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Customers Bancorp||$281.48 million||3.02||$74.14 million||$2.42||11.48|
|East West Bancorp||$1.12 billion||7.35||$504.17 million||$3.49||16.33|
East West Bancorp has higher revenue and earnings than Customers Bancorp. Customers Bancorp is trading at a lower price-to-earnings ratio than East West Bancorp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
88.9% of Customers Bancorp shares are held by institutional investors. Comparatively, 87.7% of East West Bancorp shares are held by institutional investors. 8.7% of Customers Bancorp shares are held by company insiders. Comparatively, 0.9% of East West Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
East West Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Customers Bancorp does not pay a dividend. East West Bancorp pays out 22.9% of its earnings in the form of a dividend.
This table compares Customers Bancorp and East West Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|East West Bancorp||34.63%||13.31%||1.34%|
This is a summary of current recommendations and price targets for Customers Bancorp and East West Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|East West Bancorp||2||4||3||0||2.11|
Customers Bancorp currently has a consensus price target of $42.00, indicating a potential upside of 51.13%. East West Bancorp has a consensus price target of $62.86, indicating a potential upside of 10.28%. Given Customers Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Customers Bancorp is more favorable than East West Bancorp.
Risk and Volatility
Customers Bancorp has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, East West Bancorp has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
East West Bancorp beats Customers Bancorp on 10 of the 16 factors compared between the two stocks.
About Customers Bancorp
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.
About East West Bancorp
East West Bancorp, Inc. is a bank holding company. The Company’s principal business is to serve as a holding company for East West Bank (the Bank) and other banking or banking-related subsidiaries. The Bank is a California state-chartered bank, which operates in the United States and Greater China. The Bank provides a range of personal and commercial banking services to businesses, business executives, professionals, and other individuals. It operates through three segments: Retail Banking, Commercial Banking and Other. The Retail Banking segment focuses primarily on retail operations through the Bank’s branch network. The Commercial Banking segment primarily generates commercial and industrial (C&I) loans and commercial real estate (CRE) loans through the domestic commercial lending operations in California, New York, Texas, Washington, Massachusetts, Nevada and Georgia, and through the foreign commercial lending operations in China and Hong Kong.
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