Customers Bancorp (NYSE:CUBI – Get Free Report) and First Community Bancshares (NASDAQ:FCBC – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Volatility & Risk
Customers Bancorp has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Valuation and Earnings
This table compares Customers Bancorp and First Community Bancshares”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Customers Bancorp | $906.34 million | 2.85 | $224.09 million | $8.20 | 9.33 |
| First Community Bancshares | $185.42 million | 4.93 | $48.79 million | $3.17 | 15.29 |
Customers Bancorp has higher revenue and earnings than First Community Bancshares. Customers Bancorp is trading at a lower price-to-earnings ratio than First Community Bancshares, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Customers Bancorp and First Community Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Customers Bancorp | 19.07% | 13.98% | 1.17% |
| First Community Bancshares | 28.84% | 10.82% | 1.64% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Customers Bancorp and First Community Bancshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Customers Bancorp | 0 | 5 | 6 | 1 | 2.67 |
| First Community Bancshares | 0 | 2 | 1 | 0 | 2.33 |
Customers Bancorp currently has a consensus target price of $89.62, indicating a potential upside of 17.15%. Given Customers Bancorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Customers Bancorp is more favorable than First Community Bancshares.
Institutional & Insider Ownership
89.3% of Customers Bancorp shares are owned by institutional investors. Comparatively, 35.0% of First Community Bancshares shares are owned by institutional investors. 10.4% of Customers Bancorp shares are owned by company insiders. Comparatively, 3.7% of First Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Customers Bancorp beats First Community Bancshares on 11 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 First Community Bancshares
First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement plans; and commercial, consumer real estate, and consumer and other loans. The company also provides trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. The company operates through branches in West Virginia, Virginia, North Carolina, and Tennessee. Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.
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