Reviewing Customers Bancorp (CUBI) & Its Peers

Customers Bancorp (NYSE: CUBI) is one of 312 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Customers Bancorp to related businesses based on the strength of its dividends, earnings, institutional ownership, valuation, profitability, analyst recommendations and risk.

Insider and Institutional Ownership

87.8% of Customers Bancorp shares are owned by institutional investors. Comparatively, 52.1% 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Customers Bancorp has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Customers Bancorp’s rivals have a beta of 0.81, indicating that their average stock price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Customers Bancorp and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Customers Bancorp 0 2 2 0 2.50
Customers Bancorp Competitors 2216 8675 8716 354 2.36

Customers Bancorp currently has a consensus price target of $42.33, indicating a potential upside of 54.39%. As a group, “Banks” companies have a potential downside of 6.53%. Given Customers Bancorp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Customers Bancorp is more favorable than its rivals.

Earnings & Valuation

This table compares Customers Bancorp and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Customers Bancorp $345.70 million $78.70 million 13.38
Customers Bancorp Competitors $5.50 billion $827.87 million 80.92

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

Profitability

This table compares Customers Bancorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Customers Bancorp 19.75% 15.38% 1.02%
Customers Bancorp Competitors 18.59% 8.30% 0.93%

Summary

Customers Bancorp beats its rivals on 7 of the 13 factors compared.

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.

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