Customers Bancorp (NYSE:CUBI) versus Bank7 (NASDAQ:BSVN) Critical Survey

Customers Bancorp (NYSE:CUBI) and Bank7 (NASDAQ:BSVN) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares Customers Bancorp and Bank7″s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Customers Bancorp	$1.48 billion	1.72	$224.09 million	$7.88	9.55
Bank7	$137.26 million	2.97	$43.07 million	$4.66	9.20

Customers Bancorp has higher revenue and earnings than Bank7. Bank7 is trading at a lower price-to-earnings ratio than Customers Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

89.3% of Customers Bancorp shares are owned by institutional investors. Comparatively, 23.5% of Bank7 shares are owned by institutional investors. 10.5% of Customers Bancorp shares are owned by insiders. Comparatively, 25.7% of Bank7 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Customers Bancorp and Bank7, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Customers Bancorp	0	5	6	1	2.67
Bank7	0	0	3	1	3.25

Customers Bancorp currently has a consensus price target of $87.50, suggesting a potential upside of 16.30%. Bank7 has a consensus price target of $54.50, suggesting a potential upside of 27.10%. Given Bank7’s stronger consensus rating and higher probable upside, analysts clearly believe Bank7 is more favorable than Customers Bancorp.

Volatility and Risk

Customers Bancorp has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Bank7 has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares Customers Bancorp and Bank7’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Customers Bancorp	18.63%	14.12%	1.17%
Bank7	31.77%	18.18%	2.34%

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 Bank7

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.