Customers Bancorp (NYSE:CUBI) and Byline Bancorp (NYSE:BY) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Valuation and Earnings

This table compares Customers Bancorp and Byline Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Customers Bancorp $476.95 million 1.48 $71.69 million $2.43 9.28
Byline Bancorp $258.59 million 3.03 $41.19 million $1.18 17.42

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

Institutional & Insider Ownership

79.9% of Customers Bancorp shares are held by institutional investors. Comparatively, 33.9% of Byline Bancorp shares are held by institutional investors. 9.5% of Customers Bancorp shares are held by insiders. Comparatively, 39.2% of Byline Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Customers Bancorp and Byline Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Customers Bancorp 13.45% 9.72% 0.70%
Byline Bancorp 18.36% 9.25% 1.22%

Analyst Ratings

This is a breakdown of recent ratings for Customers Bancorp and Byline Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Customers Bancorp 0 1 3 0 2.75
Byline Bancorp 0 0 2 0 3.00

Customers Bancorp presently has a consensus target price of $34.00, indicating a potential upside of 50.71%. Byline Bancorp has a consensus target price of $22.00, indicating a potential upside of 7.06%. Given Customers Bancorp’s higher probable upside, research analysts clearly believe Customers Bancorp is more favorable than Byline Bancorp.

Volatility and Risk

Customers Bancorp has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Byline Bancorp has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Summary

Customers Bancorp beats Byline Bancorp on 7 of the 13 factors compared between the two stocks.

Customers Bancorp Company Profile

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.

Byline Bancorp Company Profile

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides a range of banking products and services to small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers non-interest bearing accounts, money market demand accounts, savings accounts, interest bearing checking accounts, and time deposits, as well as certificates of deposit. The company also provides commercial loan products and services, including term loans, revolving lines of credit, construction financing, and cash management products; small business administration loans; and small ticket equipment leasing services, as well as online, mobile, and direct banking services. It operates through 57 branch offices in Chicago metropolitan area; and 1 branch office in Brookfield, Wisconsin. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was incorporated in 1978 and is headquartered in Chicago, Illinois.

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