Contrasting Customers Bancorp (NYSE:CUBI) & Truxton (OTCMKTS:TRUX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Truxton	23.10%	N/A	N/A
Customers Bancorp	15.22%	13.55%	1.01%

Analyst Ratings

This is a breakdown of current ratings and target prices for Truxton and Customers Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Truxton	0	0	0	0	0.00
Customers Bancorp	0	4	3	1	2.63

Customers Bancorp has a consensus price target of $61.88, indicating a potential upside of 16.86%. Given Customers Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Customers Bancorp is more favorable than Truxton.

Institutional and Insider Ownership

0.4% of Truxton shares are owned by institutional investors. Comparatively, 89.3% of Customers Bancorp shares are owned by institutional investors. 6.9% of Customers Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Truxton has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Customers Bancorp has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Earnings & Valuation

This table compares Truxton and Customers Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Truxton	$67.30 million	3.11	$17.54 million	$6.06	12.05
Customers Bancorp	$1.44 billion	1.17	$250.14 million	$6.16	8.60

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

Summary

Customers Bancorp beats Truxton on 12 of the 15 factors compared between the two stocks.

About Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.

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.