Analyzing Customers Bancorp (NYSE:CUBI) & Middlefield Banc (NASDAQ:MBCN)

Customers Bancorp (NYSE:CUBIGet Rating) and Middlefield Banc (NASDAQ:MBCNGet Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Risk and Volatility

Customers Bancorp has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Middlefield Banc has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares Customers Bancorp and Middlefield Banc’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Customers Bancorp $858.75 million 1.32 $314.65 million $10.02 3.43
Middlefield Banc $59.54 million 2.44 $18.63 million $3.01 8.24

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

Profitability

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

Net Margins Return on Equity Return on Assets
Customers Bancorp 40.14% 30.79% 1.85%
Middlefield Banc 31.63% 12.73% 1.36%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Customers Bancorp and Middlefield Banc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Customers Bancorp 0 3 5 0 2.63
Middlefield Banc 0 1 0 0 2.00

Customers Bancorp presently has a consensus target price of $72.36, indicating a potential upside of 110.59%. Middlefield Banc has a consensus target price of $5.00, indicating a potential downside of 79.84%. Given Customers Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Customers Bancorp is more favorable than Middlefield Banc.

Institutional & Insider Ownership

83.5% of Customers Bancorp shares are owned by institutional investors. Comparatively, 28.8% of Middlefield Banc shares are owned by institutional investors. 10.2% of Customers Bancorp shares are owned by insiders. Comparatively, 5.2% of Middlefield Banc shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Customers Bancorp beats Middlefield Banc on 12 of the 14 factors compared between the two stocks.

Customers Bancorp Company Profile (Get Rating)

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 offers deposits products, including checking, savings, MMDA, and other deposits accounts. It offers loan products, including commercial mortgage warehouse loans, multi-family and commercial real estate loans, business banking, small business loans, equipment financing, residential mortgage loans, and installment loans. It also offers traditional banking activities, including mobile phone banking, internet banking, wire transfers, electronic bill payment, lock box services, remote deposit capture services, courier services, merchant processing services, cash vault, controlled disbursements, positive pay, cash management services, such as account reconciliation, collections, and sweep accounts. It operates 12 full-service branches, as well as limited production and administrative offices in Southeastern Pennsylvania, including Bucks, Berks, Chester, Philadelphia, and Delaware Counties; Harrisburg, Pennsylvania; Rye Brook and New York; Hamilton, New Jersey; Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire; Manhattan and Melville, New York; Washington D.C.; Chicago, Illinois; Dallas, Texas; Orlando, Florida; and Wilmington, North Carolina. Customers Bancorp, Inc. was founded in 1994 and is headquartered in West Reading, Pennsylvania.

Middlefield Banc Company Profile (Get Rating)

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio. It provides checking, savings, negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, commercial loans, real estate loans, various consumer loans, safe deposit facilities, and travelers' checks. The company also offers operational and working capital, term business, residential construction, professional, and residential and mortgage loans, as well as consumer installment loans for home improvements, automobiles, boats, and other personal expenditures; loans to finance capital purchases; selected guaranteed or subsidized loan programs for small businesses; and agricultural loans. Further, it provides official checks, money orders, ATM services, as well as IRA accounts; online banking and bill payment services to individuals; and online cash management services to business customers. In addition, the company resolves and disposes troubled assets in Ohio. As of December 31, 2021, it has 17 banking centers in Chardon, Newbury, and Middlefield, Garrettsville, Mantua, Orwell, Cortland, Dublin, Westerville, Sunbury, Powell, Beachwood, Solon, Twinsburg, and Plain City; as well as an administrative office in Middlefield, and a loan production office in Mentor. Middlefield Banc Corp. was founded in 1901 and is headquartered in Middlefield, Ohio.

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