Head to Head Contrast: MainStreet Bancshares (NASDAQ:MNSB) & Customers Bancorp (NYSE:CUBI)

Customers Bancorp (NYSE:CUBI) and MainStreet Bancshares (NASDAQ:MNSB) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional and Insider Ownership

89.3% of Customers Bancorp shares are owned by institutional investors. Comparatively, 52.3% of MainStreet Bancshares shares are owned by institutional investors. 6.9% of Customers Bancorp shares are owned by company insiders. Comparatively, 9.2% of MainStreet Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Customers Bancorp	$723.48 million	2.41	$250.14 million	$6.16	8.94
MainStreet Bancshares	$127.76 million	1.05	$26.58 million	$1.20	14.70

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

Volatility & Risk

Customers Bancorp has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, MainStreet Bancshares has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares Customers Bancorp and MainStreet Bancshares’ 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%
MainStreet Bancshares	8.34%	5.79%	0.55%

Analyst Recommendations

This is a breakdown of current ratings for Customers Bancorp and MainStreet Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Customers Bancorp	0	5	3	1	2.56
MainStreet Bancshares	0	0	0	0	0.00

Customers Bancorp presently has a consensus target price of $61.11, indicating a potential upside of 10.93%. Given Customers Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Customers Bancorp is more favorable than MainStreet Bancshares.

Summary

Customers Bancorp beats MainStreet Bancshares on 13 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 MainStreet Bancshares

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; business and consumer checking, interest-bearing checking, business account analysis, and other depository services; and cash management, wire transfer, check imaging, bill pay, remote deposit capture, and courier services. It also provides commercial loans, include government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising term loans and overdraft protection, as well as debit and credit cards. In addition, the company offers deposit insurance solutions; remote deposit of checks; and internet bill payment, online cash management, and online and mobile banking services. It operates in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington D.C., as well as automated teller machines. The company was incorporated in 2003 and is headquartered in Fairfax, Virginia.