First Seacoast Bancorp (NASDAQ:FSEA) & Customers Bancorp (NYSE:CUBI) Financial Analysis

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

Insider and Institutional Ownership

38.4% of First Seacoast Bancorp shares are held by institutional investors. Comparatively, 89.3% of Customers Bancorp shares are held by institutional investors. 7.8% of First Seacoast Bancorp shares are held by insiders. Comparatively, 10.4% of Customers Bancorp shares are held by 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.

Valuation and Earnings

This table compares First Seacoast Bancorp and Customers Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Seacoast Bancorp	$15.93 million	5.10	-$850,000.00	($0.04)	-431.25
Customers Bancorp	$906.34 million	2.80	$224.09 million	$8.20	9.15

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

Analyst Recommendations

This is a breakdown of current recommendations for First Seacoast Bancorp and Customers Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Seacoast Bancorp	0	1	0	0	2.00
Customers Bancorp	1	4	6	1	2.58

Customers Bancorp has a consensus price target of $90.82, suggesting a potential upside of 21.10%. Given Customers Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Customers Bancorp is more favorable than First Seacoast Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Seacoast Bancorp	0.15%	0.07%	0.01%
Customers Bancorp	19.07%	13.80%	1.16%

Risk and Volatility

First Seacoast Bancorp has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Customers Bancorp has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Summary

Customers Bancorp beats First Seacoast Bancorp on 14 of the 15 factors compared between the two stocks.

About First Seacoast Bancorp

First Seacoast Bancorp, Inc. operates as the holding company for First Seacoast Bank that provides commercial and consumer banking services for individuals and businesses. The company offers interest-bearing and non-interest-bearing checking, savings, and money market accounts, as well as time deposits. It also provides various lending products comprising one- to four-family residential real estate loans; commercial real estate and multi-family real estate loans; acquisition, development, and land loans; commercial and industrial loans; home equity loans and lines of credit; and consumer loans. In addition, the company offers wealth management services, such as retirement planning, portfolio management, investment and insurance strategies, business retirement plans, and college planning services. The company was founded in 1890 and is headquartered in Dover, New Hampshire. First Seacoast Bancorp, Inc. is a subsidiary of First Seacoast Bancorp, MHC.

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.