Financial Comparison: Customers Bancorp (CUBI) versus BB&T Corporation (BBT)

Customers Bancorp (NYSE: CUBI) and BB&T Corporation (NYSE:BBT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Customers Bancorp and BB&T Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Customers Bancorp 0 1 2 0 2.67
BB&T Corporation 1 11 4 0 2.19

Customers Bancorp presently has a consensus target price of $42.00, indicating a potential upside of 46.39%. BB&T Corporation has a consensus target price of $46.93, indicating a potential upside of 4.77%. Given Customers Bancorp’s stronger consensus rating and higher possible upside, research analysts plainly believe Customers Bancorp is more favorable than BB&T Corporation.

Profitability

This table compares Customers Bancorp and BB&T Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Customers Bancorp 22.81% 15.93% 1.03%
BB&T Corporation 19.57% 9.62% 1.18%

Risk and Volatility

Customers Bancorp has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, BB&T Corporation has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Dividends

BB&T Corporation pays an annual dividend of $1.32 per share and has a dividend yield of 2.9%. Customers Bancorp does not pay a dividend. BB&T Corporation pays out 49.3% of its earnings in the form of a dividend. Customers Bancorp has increased its dividend for 5 consecutive years.

Institutional & Insider Ownership

87.5% of Customers Bancorp shares are owned by institutional investors. Comparatively, 64.3% of BB&T Corporation shares are owned by institutional investors. 8.7% of Customers Bancorp shares are owned by company insiders. Comparatively, 0.4% of BB&T Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Customers Bancorp and BB&T Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Customers Bancorp $288.30 million 3.06 $74.98 million $2.44 11.76
BB&T Corporation $10.58 billion 3.42 $2.17 billion $2.68 16.71

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

Summary

BB&T Corporation beats Customers Bancorp on 9 of the 17 factors compared between the two stocks.

Customers Bancorp Company Profile

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.

BB&T Corporation Company Profile

BB&T Corporation is a financial holding company. The Company conducts its business operations primarily through its bank subsidiary, Branch Banking and Trust Company (Branch Bank), and other nonbank subsidiaries. Its segments include Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Holdings and Financial Services. Branch Bank provides a range of banking and trust services for retail and commercial clients. Its retail services include asset management, automobile lending, bankcard lending, consumer finance, home equity lending, home mortgage lending, insurance, investment brokerage services, payment solutions and sales finance, among others. Its commercial services include asset management, association services, capital market services, commercial deposit services, commercial finance, corporate banking, floor plan lending, insurance, merchant services, real estate lending and payment solutions, among others.

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