Customers Bancorp (NYSE:CUBI) versus HomeStreet (NASDAQ:HMST) Financial Analysis


Bancorp Customers (NYSE: CUBIGet a rating) and HomeStreet (NASDAQ: HMSTGet a rating) are both small cap finance companies, but which is the better company? We will compare the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Profitability

This table compares the net margins, return on equity and return on assets of Customers Bancorp and HomeStreet.

Net margins Return on equity return on assets
Bancorp Customers 40.14% 30.79% 1.85%
HomeStreet 31.04% 15.46% 1.45%

Risk and Volatility

Clients Bancorp has a beta of 1.61, suggesting its stock price is 61% more volatile than the S&P 500. In comparison, HomeStreet has a beta of 1.06, suggesting its stock price is 6% more volatile than the S&P 500.

Institutional and Insider Ownership

83.5% of Customers Bancorp shares are held by institutional investors. Comparatively, 92.9% of HomeStreet shares are held by institutional investors. 6.8% of Customers Bancorp stock is held by insiders of the company. By comparison, 4.8% of HomeStreet’s stock is held by company insiders. Strong institutional ownership indicates that endowments, hedge funds, and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommendations for Bancorp and HomeStreet customers, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Bancorp Customers 0 3 5 0 2.63
HomeStreet 1 1 1 0 2.00

Bancorp Clients currently has a consensus target price of $71.07, indicating a potential upside of 86.93%. HomeStreet has a consensus target price of $40.67, indicating a potential upside of 14.59%. Given Customers Bancorp’s stronger consensus rating and higher likely upside, stock analysts clearly believe Customers Bancorp is more favorable than HomeStreet.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of Customers Bancorp and HomeStreet.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Bancorp Customers $858.75 million 1.46 $314.65 million $10.02 3.79
HomeStreet $364.27 million 1.82 $115.42 million $5.12 6.93

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

Summary

Customers Bancorp beats HomeStreet on 11 out of 14 factors compared between the two stocks.

About Bancorp Customers

(Get a rating)

Customers Bancorp, Inc. operates as a bank holding company for Customers Bank which provides financial products and services to individuals and small and medium businesses. The Company offers deposit products, including checking, savings, MMDA and other deposit accounts. It offers lending products, including commercial warehouse mortgages, multifamily and commercial real estate loans, business banking, small business loans, equipment financing, residential mortgages and installment loans. It also offers traditional banking activities, including mobile phone banking, Internet banking, wire transfers, electronic bill payment, safe deposit services, remote deposit capture services, courier services, merchant processing services, safe deposit box, controlled disbursements, positive payment, cash management services. , such as account reconciliation, collections and transfer accounts. It operates 12 full-service branches, as well as limited production and administrative offices in southeastern Pennsylvania, including Bucks, Berks, Chester, Philadelphia and Delaware counties; Harrisburg, Pennsylvania; Rye Creek and New York; Hamilton, New Jersey; Boston, MA; Providence, Rhode Island; Portsmouth, New Hampshire; Manhattan and Melville, New York; Washington D.C.; Chicago, Ill.; Dallas, TX; Orlando Florida; and Wilmington, North Carolina. Clients Bancorp, Inc. was founded in 1994 and is based in West Reading, Pennsylvania.

About HomeStreet

(Get a rating)

HomeStreet LogoHomeStreet, Inc. operates as a banking holding company for HomeStreet Bank which provides commercial, mortgage, and consumer/retail banking services primarily in the western United States. The company offers personal and business chequing, savings accounts, interest-bearing negotiable promissory withdrawal accounts, money market accounts and term deposit certificates; credit card; Insurance; and cash management products and services. Its lending products include commercial business and agricultural loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate and construction loans for residential real estate development. and commercial, as well as consumer installment loans and permanent loans on commercial real estate. real estate and single family residences. Additionally, the Company offers its products and services through bank branches, loan origination offices and ATMs, as well as online, mobile and telephone banking. As of December 31, 2021, it operated 60 full-service bank branches located in Washington State, Northern and Southern California, Portland, Oregon and Hawaii; and five major stand-alone commercial lending centers in central Washington, Oregon, southern California, Idaho and Utah. HomeStreet, Inc. serves small and medium businesses, real estate investors, professional firms and individuals. The company was previously known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.



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