Head-To-Head Comparison: Dime Community Bancshares (NASDAQ:DCOM) versus Customers Bancorp (NYSE:CUBI)

Dime Community Bancshares (NASDAQ:DCOM) and Customers Bancorp (NYSE:CUBI) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Volatility and Risk

Dime Community Bancshares has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Customers Bancorp has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Earnings & Valuation

This table compares Dime Community Bancshares and Customers Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dime Community Bancshares	$730.38 million	1.92	$110.68 million	$2.36	13.51
Customers Bancorp	$1.48 billion	1.49	$224.09 million	$6.20	10.43

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

Profitability

This table compares Dime Community Bancshares and Customers Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dime Community Bancshares	15.15%	9.12%	0.83%
Customers Bancorp	15.15%	14.05%	1.14%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dime Community Bancshares	0	2	3	0	2.60
Customers Bancorp	1	4	6	1	2.58

Dime Community Bancshares presently has a consensus price target of $38.33, suggesting a potential upside of 20.24%. Customers Bancorp has a consensus price target of $87.67, suggesting a potential upside of 35.53%. Given Customers Bancorp’s higher probable upside, analysts plainly believe Customers Bancorp is more favorable than Dime Community Bancshares.

Institutional & Insider Ownership

75.3% of Dime Community Bancshares shares are held by institutional investors. Comparatively, 89.3% of Customers Bancorp shares are held by institutional investors. 7.1% of Dime Community Bancshares shares are held by company insiders. Comparatively, 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 stock will outperform the market over the long term.

Summary

Customers Bancorp beats Dime Community Bancshares on 11 of the 14 factors compared between the two stocks.

About Dime Community Bancshares

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services. The company accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. It also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, the company invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, it offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was founded in 1910 and is headquartered in Hauppauge, New York.

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.