F.N.B. (NYSE:FNB) vs. Customers Bancorp (NYSE:CUBI) Head to Head Analysis

F.N.B. (NYSE:FNB) and Customers Bancorp (NYSE:CUBI) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Volatility and Risk

F.N.B. has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Customers Bancorp has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for F.N.B. and Customers Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F.N.B.	0	2	5	0	2.71
Customers Bancorp	1	4	6	1	2.58

F.N.B. currently has a consensus price target of $20.58, suggesting a potential upside of 17.85%. Customers Bancorp has a consensus price target of $91.18, suggesting a potential upside of 20.81%. Given Customers Bancorp’s higher probable upside, analysts clearly believe Customers Bancorp is more favorable than F.N.B..

Earnings and Valuation

This table compares F.N.B. and Customers Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F.N.B.	$1.83 billion	3.37	$565.00 million	$1.68	10.40
Customers Bancorp	$906.34 million	2.81	$224.09 million	$8.20	9.20

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

Insider & Institutional Ownership

79.2% of F.N.B. shares are held by institutional investors. Comparatively, 89.3% of Customers Bancorp shares are held by institutional investors. 1.5% of F.N.B. shares are held by insiders. Comparatively, 10.4% of Customers Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
F.N.B.	22.29%	9.10%	1.22%
Customers Bancorp	19.07%	13.80%	1.16%

Summary

Customers Bancorp beats F.N.B. on 8 of the 15 factors compared between the two stocks.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.

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.