Community Trust Bancorp (NASDAQ:CTBI) vs. Customers Bancorp (NYSE:CUBI) Head to Head Survey

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

Risk & Volatility

Customers Bancorp has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Community Trust Bancorp has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Profitability

This table compares Customers Bancorp and Community Trust Bancorp’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%
Community Trust Bancorp	23.24%	11.73%	1.46%

Earnings & Valuation

This table compares Customers Bancorp and Community Trust Bancorp”s top-line revenue, earnings per share 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
Community Trust Bancorp	$273.56 million	3.82	$82.81 million	$5.17	11.16

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

Insider and Institutional Ownership

89.3% of Customers Bancorp shares are held by institutional investors. Comparatively, 60.2% of Community Trust Bancorp shares are held by institutional investors. 8.7% of Customers Bancorp shares are held by insiders. Comparatively, 4.3% of Community Trust Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Customers Bancorp	0	6	5	1	2.58
Community Trust Bancorp	0	0	3	0	3.00

Customers Bancorp currently has a consensus target price of $84.80, indicating a potential upside of 8.25%. Community Trust Bancorp has a consensus target price of $63.50, indicating a potential upside of 10.03%. Given Community Trust Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Community Trust Bancorp is more favorable than Customers Bancorp.

Summary

Customers Bancorp beats Community Trust Bancorp on 9 of the 15 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 Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.