JPMorgan Chase & Co. (NYSE:JPM – Get Free Report) and Customers Bancorp (NYSE:CUBI – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Earnings & Valuation
This table compares JPMorgan Chase & Co. and Customers Bancorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| JPMorgan Chase & Co. | $280.35 billion | 3.37 | $57.05 billion | $23.34 | 15.22 |
| Customers Bancorp | $1.48 billion | 1.78 | $224.09 million | $8.20 | 9.53 |
Analyst Ratings
This is a summary of recent recommendations and price targets for JPMorgan Chase & Co. and Customers Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JPMorgan Chase & Co. | 0 | 11 | 16 | 1 | 2.64 |
| Customers Bancorp | 1 | 4 | 6 | 1 | 2.58 |
JPMorgan Chase & Co. presently has a consensus price target of $359.96, indicating a potential upside of 1.35%. Customers Bancorp has a consensus price target of $90.77, indicating a potential upside of 16.11%. Given Customers Bancorp’s higher possible upside, analysts clearly believe Customers Bancorp is more favorable than JPMorgan Chase & Co..
Volatility & Risk
JPMorgan Chase & Co. has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Customers Bancorp has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.
Insider & Institutional Ownership
71.6% of JPMorgan Chase & Co. shares are owned by institutional investors. Comparatively, 89.3% of Customers Bancorp shares are owned by institutional investors. 0.4% of JPMorgan Chase & Co. shares are owned by company insiders. Comparatively, 10.4% of Customers Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares JPMorgan Chase & Co. and Customers Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| JPMorgan Chase & Co. | 21.86% | 18.23% | 1.33% |
| Customers Bancorp | 19.07% | 13.80% | 1.16% |
Summary
JPMorgan Chase & Co. beats Customers Bancorp on 10 of the 14 factors compared between the two stocks.
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.
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.
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