Critical Contrast: Customers Bancorp (NYSE:CUBI) and Commonwealth Business Bank (OTCMKTS:CBBI)

Customers Bancorp (NYSE:CUBI) and Commonwealth Business Bank (OTCMKTS:CBBI) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Customers Bancorp	12.43%	13.24%	1.05%
Commonwealth Business Bank	15.89%	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Customers Bancorp and Commonwealth Business Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Customers Bancorp	0	6	5	1	2.58
Commonwealth Business Bank	0	0	0	0	0.00

Customers Bancorp presently has a consensus price target of $84.80, suggesting a potential upside of 8.25%. Given Customers Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Customers Bancorp is more favorable than Commonwealth Business Bank.

Valuation & Earnings

This table compares Customers Bancorp and Commonwealth Business Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Customers Bancorp	$1.39 billion	1.93	$181.47 million	$4.93	15.89
Commonwealth Business Bank	$122.69 million	N/A	$22.43 million	$1.80	6.19

Customers Bancorp has higher revenue and earnings than Commonwealth Business Bank. Commonwealth Business 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.

Institutional and Insider Ownership

89.3% of Customers Bancorp shares are owned by institutional investors. 6.9% of Customers Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Customers Bancorp has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Commonwealth Business Bank has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Summary

Customers Bancorp beats Commonwealth Business Bank on 13 of the 14 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 individual consumers, and small and middle market businesses. The company provides deposit banking products, which includes commercial and consumer checking, non-interest-bearing and interest-bearing demand, MMDA, savings, and time deposit accounts. Its lending business offers commercial and industrial, commercial real estate, and multifamily and residential mortgage loans; SBA lending and financing; specialty lending includes fund finance, real estate specialty finance, technology and venture, and healthcare and financial institutions group; commercial loans to mortgage companies, and commercial equipment financing; and fund finance, such as variable rate loans secured by collateral pools to private debt funds; and cash management services. In addition, the company provides digital banking including Banking-as-a-Service to fintech companies, payments and treasury services to businesses, and consumer loans through fintech companies and the TassatPay, a blockchain-based instant B2B payments platform which offers instant payments including over-the-counter desks, exchanges, liquidity providers, market makers, funds, and other B2B verticals. Further, it offers mobile phone and internet banking, wire transfers, electronic bill payment, lock box, remote deposit capture, courier, merchant processing, cash vault, controlled disbursements, positive pay, and cash management services, such as account reconciliation, collections, and sweep accounts. The company was incorporated in 2010 and is headquartered in West Reading, Pennsylvania.

About Commonwealth Business Bank

CBB Bancorp, Inc. operates as the holding company for Commonwealth Business Bank that provides various commercial banking products and services to individuals and businesses in the United States. It offers checking, savings, money market, and certification of deposit accounts; SBA lending; business lines of credit; business term loans; business and commercial property loans; construction loans; and credit cards. The company also provides treasury management, and mobile and online banking services, as well as title and escrow services. In addition, it engages in investing activities; and offers trade finance services, including commercial letters of credit, standby letters of credit, and documentary collection services. The company offers its services through full-service and limited-service branches in Southern California, Dallas, Texas and Honolulu, and Hawaii; and loan production offices in the states of Colorado, Georgia, Texas, and Washington. CBB Bancorp, Inc. was founded in 2005 and is headquartered in Los Angeles, California.