Head-To-Head Comparison: Customers Bancorp (NYSE:CUBI) & JPMorgan Chase & Co. (NYSE:JPM)

JPMorgan Chase & Co. (NYSE:JPM) and Customers Bancorp (NYSE:CUBI) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

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%

Analyst Ratings

This is a summary of recent ratings 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 target price of $359.96, suggesting a potential upside of 1.35%. Customers Bancorp has a consensus target price of $90.77, suggesting 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..

Valuation and Earnings

This table compares JPMorgan Chase & Co. and Customers Bancorp”s gross 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

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

Risk & Volatility

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 and Institutional Ownership

71.6% of JPMorgan Chase & Co. shares are held by institutional investors. Comparatively, 89.3% of Customers Bancorp shares are held by institutional investors. 0.4% of JPMorgan Chase & Co. shares are held by company insiders. Comparatively, 10.4% of Customers Bancorp shares are held by company 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.

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.