Customers Bancorp (NYSE:CUBI) and Ameris Bancorp (NASDAQ:ABCB) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Risk & Volatility
Customers Bancorp has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Ameris Bancorp has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.
Institutional and Insider Ownership
81.6% of Customers Bancorp shares are held by institutional investors. Comparatively, 78.4% of Ameris Bancorp shares are held by institutional investors. 7.7% of Customers Bancorp shares are held by company insiders. Comparatively, 3.1% of Ameris Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Customers Bancorp and Ameris Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ameris Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Customers Bancorp does not pay a dividend. Ameris Bancorp pays out 16.1% of its earnings in the form of a dividend.
This is a summary of recent recommendations and price targets for Customers Bancorp and Ameris Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Customers Bancorp presently has a consensus target price of $36.75, suggesting a potential upside of 58.27%. Ameris Bancorp has a consensus target price of $57.80, suggesting a potential upside of 26.37%. Given Customers Bancorp’s higher possible upside, equities research analysts clearly believe Customers Bancorp is more favorable than Ameris Bancorp.
Earnings & Valuation
This table compares Customers Bancorp and Ameris Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Customers Bancorp||$451.76 million||1.63||$78.83 million||$2.20||10.55|
|Ameris Bancorp||$398.80 million||5.45||$73.54 million||$2.48||18.44|
Customers Bancorp has higher revenue and earnings than Ameris Bancorp. Customers Bancorp is trading at a lower price-to-earnings ratio than Ameris Bancorp, indicating that it is currently the more affordable of the two stocks.
Customers Bancorp beats Ameris Bancorp on 8 of the 14 factors compared between the two stocks.
About Customers Bancorp
Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to small and middle market businesses, not-for-profits, and consumers. The company accepts various deposit products, such as checking, savings, money market deposit, time deposit, individual retirement, and non-retail time deposit accounts, as well as certificates of deposit. Its loan products include commercial and industrial lending; small and middle market business banking, such as small business administration loans; multi-family and commercial real estate lending; and commercial loans to mortgage originators, as well as consumer lending products comprising mortgage and home equity lending. The company also offers private banking services; mobile phone banking, Internet banking, wire transfers, electronic bill payment, lock box, remote deposit capture, courier, merchant processing, cash vault, controlled disbursements, and positive pay services; and cash management services, such as account reconciliation, collections, and sweep accounts. It operates 13 full-service branches, as well as limited purpose offices in Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire; Manhattan and Melville, New York; and Philadelphia, Pennsylvania. Customers Bancorp, Inc. was founded in 1994 and is headquartered in Wyomissing, Pennsylvania.
About Ameris Bancorp
Ameris Bancorp operates as the holding company for Ameris Bank that provides banking services to retail and commercial customers primarily in Georgia, Alabama, Florida, and South Carolina. The company operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, Small Business Administration Division, and Premium Finance Division. It offers commercial and retail checking accounts, regular interest-bearing savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. The company also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and small unsecured personal credit lines; and municipal and commercial insurance premium finance loans. It operates 97 domestic banking offices and 13 loan production offices. Ameris Bancorp was founded in 1971 and is headquartered in Moultrie, Georgia.
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