Customers Bancorp (NYSE:CUBI) versus Benchmark Bankshares (OTCMKTS:BMBN) Critical Contrast

Customers Bancorp (NYSE:CUBI) and Benchmark Bankshares (OTCMKTS:BMBN) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Earnings & Valuation

This table compares Customers Bancorp and Benchmark Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Customers Bancorp	$1.48 billion	1.84	$224.09 million	$7.88	10.24
Benchmark Bankshares	$83.37 million	2.14	$19.84 million	$4.46	8.97

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

Risk & Volatility

Customers Bancorp has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Customers Bancorp and Benchmark Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Customers Bancorp	0	5	6	1	2.67
Benchmark Bankshares	0	0	0	0	0.00

Customers Bancorp presently has a consensus price target of $88.00, indicating a potential upside of 9.11%. Given Customers Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Customers Bancorp is more favorable than Benchmark Bankshares.

Profitability

This table compares Customers Bancorp and Benchmark Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Customers Bancorp	18.63%	14.12%	1.17%
Benchmark Bankshares	23.80%	N/A	N/A

Insider & Institutional Ownership

89.3% of Customers Bancorp shares are owned by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are owned by institutional investors. 10.5% of Customers Bancorp shares are owned by insiders. Comparatively, 14.0% of Benchmark Bankshares shares are owned 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.

Summary

Customers Bancorp beats Benchmark Bankshares on 12 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 Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.