Head-To-Head Analysis: Customers Bancorp (NYSE:CUBI) versus Seacoast Banking Co. of Florida (NASDAQ:SBCF)

Seacoast Banking Co. of Florida (NASDAQ:SBCF) and Customers Bancorp (NYSE:CUBI) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Earnings & Valuation

This table compares Seacoast Banking Co. of Florida and Customers Bancorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seacoast Banking Co. of Florida	$768.13 million	2.67	$104.03 million	$1.40	17.23
Customers Bancorp	$1.44 billion	1.06	$250.14 million	$7.16	6.74

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

Volatility & Risk

Seacoast Banking Co. of Florida has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Customers Bancorp has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Profitability

This table compares Seacoast Banking Co. of Florida and Customers Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seacoast Banking Co. of Florida	15.08%	5.68%	0.80%
Customers Bancorp	16.88%	18.17%	1.22%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Seacoast Banking Co. of Florida and Customers Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seacoast Banking Co. of Florida	0	3	2	0	2.40
Customers Bancorp	0	1	6	1	3.00

Seacoast Banking Co. of Florida currently has a consensus target price of $26.10, suggesting a potential upside of 8.21%. Customers Bancorp has a consensus target price of $61.50, suggesting a potential upside of 27.46%. Given Customers Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Customers Bancorp is more favorable than Seacoast Banking Co. of Florida.

Insider and Institutional Ownership

81.8% of Seacoast Banking Co. of Florida shares are held by institutional investors. Comparatively, 89.3% of Customers Bancorp shares are held by institutional investors. 1.5% of Seacoast Banking Co. of Florida shares are held by insiders. Comparatively, 9.4% of Customers Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Customers Bancorp beats Seacoast Banking Co. of Florida on 13 of the 15 factors compared between the two stocks.

About Seacoast Banking Co. of Florida

Seacoast Banking Corporation of Florida operates as the bank holding company for Seacoast National Bank that provides integrated financial services to retail and commercial customers in Florida. The company offers noninterest and interest-bearing demand deposit, money market, savings, and customer sweep accounts; time certificates of deposit; construction and land development, commercial and residential real estate, and commercial and financial loans; and consumer loans, including installment loans and revolving lines, as well as loans for automobiles, boats, and personal and family purposes. It also provides wealth management, mortgage, and insurance services through online and mobile banking solutions, as well as brokerage and annuity services. Seacoast Banking Corporation of Florida was founded in 1926 and is headquartered in Stuart, Florida.

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.