First US Bancshares (NASDAQ:FUSB) and Customers Bancorp (NYSE:CUBI) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Risk & Volatility
First US Bancshares has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Customers Bancorp has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
This table compares First US Bancshares and Customers Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First US Bancshares||7.27%||4.22%||0.44%|
Institutional & Insider Ownership
15.1% of First US Bancshares shares are owned by institutional investors. Comparatively, 79.6% of Customers Bancorp shares are owned by institutional investors. 10.0% of First US Bancshares shares are owned by insiders. Comparatively, 9.5% of Customers Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares First US Bancshares and Customers Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First US Bancshares||$42.68 million||1.48||$2.49 million||N/A||N/A|
|Customers Bancorp||$476.95 million||1.35||$71.69 million||$2.43||8.51|
Customers Bancorp has higher revenue and earnings than First US Bancshares.
This is a summary of recent recommendations and price targets for First US Bancshares and Customers Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First US Bancshares||0||0||0||0||N/A|
Customers Bancorp has a consensus target price of $29.44, suggesting a potential upside of 42.42%. Given Customers Bancorp’s higher possible upside, analysts clearly believe Customers Bancorp is more favorable than First US Bancshares.
First US Bancshares pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Customers Bancorp does not pay a dividend.
Customers Bancorp beats First US Bancshares on 8 of the 13 factors compared between the two stocks.
About First US Bancshares
First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company accepts deposit products, such as non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include loans for the development of residential housing projects, development of commercial and industrial use property, and purchase and improvement of raw land; mortgage loans on one-to-four family residential properties and secured by apartment buildings; home equity loans and lines of credit; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, or other commercial property; loans for agricultural production; commercial and industrial loans; and automobile, household and personal, and other direct consumer installment loans. The company also provides letters of credit; and safe deposit box and remote deposit capture, as well as reinsures or underwrites credit life, and credit accident and health insurance policies. First US Bancshares, Inc. serves small- and medium-sized businesses, property managers, business executives, professionals, and other individuals. It operates 20 banking offices located in Birmingham, Bucksville, Butler, Calera, Centreville, Columbiana, Gilbertown, Grove Hill, Harpersville, Jackson, Thomasville, Tuscaloosa, and Woodstock, Alabama; Knoxville and Powell, Tennessee; and Rose Hill and Ewing, Virginia. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.
About Customers Bancorp
Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to small and middle market businesses, not-for-profits, and consumers. The company operates in two segments, Customers Bank Business Banking and BankMobile. The company accepts various deposit products, such as checking, savings, money market deposit, time deposit, and individual retirement accounts, as well as certificates of deposit. It also provides commercial and industrial lending services; small business administration loans; multi-family and commercial real estate loans; commercial loans to mortgage companies; equipment financing services; and home equity and residential mortgage loans. In addition, the company offers private banking services; mobile phone banking, Internet banking, wire transfers, electronic bill payment, lock box, remote deposit capture, courier, merchant processing, cash vault, controlled disbursements, and positive pay services; and cash management services, such as account reconciliation, collections, and sweep accounts. It operates 13 full-service branches, as well as limited purpose offices in Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire; Manhattan and Melville, New York; Philadelphia, Pennsylvania; Washington D.C.; and Chicago, Illinois. Customers Bancorp, Inc. was founded in 1994 and is headquartered in Wyomissing, Pennsylvania.
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