Reviewing Customers Bancorp (NYSE:CUBI) & First Community Bancshares (NASDAQ:FCBC)

First Community Bancshares (NASDAQ:FCBC) and Customers Bancorp (NYSE:CUBI) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Institutional & Insider Ownership

35.0% of First Community Bancshares shares are held by institutional investors. Comparatively, 89.3% of Customers Bancorp shares are held by institutional investors. 3.7% of First Community Bancshares shares are held by insiders. Comparatively, 10.4% of Customers Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Community Bancshares	28.84%	10.82%	1.64%
Customers Bancorp	19.07%	13.98%	1.17%

Volatility and Risk

First Community Bancshares has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Customers Bancorp has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Valuation & Earnings

This table compares First Community Bancshares and Customers Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Community Bancshares	$185.42 million	4.93	$48.79 million	$3.17	15.29
Customers Bancorp	$906.34 million	2.85	$224.09 million	$8.20	9.33

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for First Community Bancshares and Customers Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Community Bancshares	0	2	1	0	2.33
Customers Bancorp	0	5	6	1	2.67

Customers Bancorp has a consensus target price of $89.62, suggesting a potential upside of 17.15%. Given Customers Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Customers Bancorp is more favorable than First Community Bancshares.

Summary

Customers Bancorp beats First Community Bancshares on 11 of the 15 factors compared between the two stocks.

About First Community Bancshares

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement plans; and commercial, consumer real estate, and consumer and other loans. The company also provides trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. The company operates through branches in West Virginia, Virginia, North Carolina, and Tennessee. Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.

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.