Head to Head Analysis: Truxton (OTCMKTS:TRUX) & Customers Bancorp (NYSE:CUBI)

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

Profitability

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

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

Volatility & Risk

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

Earnings and Valuation

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

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

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.

Insider & Institutional Ownership

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Customers Bancorp and Truxton, as provided by MarketBeat.com.

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

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

Summary

Customers Bancorp beats Truxton on 12 of the 15 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 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.

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.