JPMorgan Chase & Co. (NYSE:JPM) and Customers Bancorp (NYSE:CUBI) Head to Head Survey

Customers Bancorp (NYSE:CUBI) and JPMorgan Chase & Co. (NYSE:JPM) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Insider and Institutional Ownership

89.3% of Customers Bancorp shares are held by institutional investors. Comparatively, 71.6% of JPMorgan Chase & Co. shares are held by institutional investors. 10.4% of Customers Bancorp shares are held by insiders. Comparatively, 0.4% of JPMorgan Chase & Co. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Customers Bancorp has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares Customers Bancorp and JPMorgan Chase & Co.”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	1.79	$224.09 million	$8.20	9.58
JPMorgan Chase & Co.	$280.35 billion	3.30	$57.05 billion	$23.34	14.91

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

Profitability

This table compares Customers Bancorp and JPMorgan Chase & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Customers Bancorp	19.07%	13.80%	1.16%
JPMorgan Chase & Co.	21.86%	18.23%	1.33%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Customers Bancorp and JPMorgan Chase & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Customers Bancorp	1	4	6	1	2.58
JPMorgan Chase & Co.	0	12	16	0	2.57

Customers Bancorp presently has a consensus price target of $90.77, indicating a potential upside of 15.53%. JPMorgan Chase & Co. has a consensus price target of $359.96, indicating a potential upside of 3.41%. Given Customers Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Customers Bancorp is more favorable than JPMorgan Chase & Co..

Summary

JPMorgan Chase & Co. beats Customers 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 JPMorgan Chase & Co.

JPMorgan Chase & Co. is a financial holding company, which engages in the provision of financial and investment banking services. It focuses on investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. It operates through the following segments: Consumer and Community Banking (CCB), Commercial and Investment Bank (CIB), Asset and Wealth Management (AWM), and Corporate. The CCB segment originates and services mortgage loans. The CIB segment makes markets and services clients across fixed income, foreign exchange, equities, and commodities. The AWM segment provides initial capital investments in products such as mutual funds and capital invested alongside third-party investors. The Corporate segment manages its liquidity, funding, capital, structural interest rate, and foreign exchange risks. The company was founded in 1799 and is headquartered in New York, NY.