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CUBI vs FRME

CUBI
Customers Bancorp, Inc.
NEUTRAL
Price
$74.38
Market Cap
$2.51B
Sector
Financial Services
AI Confidence
80%
FRME
First Merchants Corporation
NEUTRAL
Price
$40.36
Market Cap
$2.56B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
CUBI
9.37
FRME
10.62
Forward P/E
CUBI
7.94
FRME
8.9
P/B Ratio
CUBI
1.2
FRME
0.94
P/S Ratio
CUBI
3.1
FRME
3.99
EV/EBITDA
CUBI
--
FRME
--

Profitability

Gross Margin
CUBI
0.0%
FRME
0.0%
Operating Margin
CUBI
48.7%
FRME
42.7%
Profit Margin
CUBI
34.76%
FRME
35.22%
ROE
CUBI
14.01%
FRME
9.47%
ROA
CUBI
1.16%
FRME
1.21%

Growth

Revenue Growth
CUBI
76.4%
FRME
-4.6%
Earnings Growth
CUBI
579.3%
FRME
-10.9%

Financial Health

Debt/Equity
CUBI
--
FRME
--
Current Ratio
CUBI
--
FRME
--
Quick Ratio
CUBI
--
FRME
--

Dividends

Dividend Yield
CUBI
--
FRME
3.57%
Payout Ratio
CUBI
0.0%
FRME
36.86%

AI Verdict

CUBI NEUTRAL

CUBI presents a stark contradiction between explosive growth and deteriorating fundamental health. While the Piotroski F-Score of 2/9 indicates significant weakness in financial health, the stock is fundamentally undervalued, trading well below its Graham Number ($105.14) and Intrinsic Value ($234.23). Massive YoY earnings growth (579.30%) and a low P/E of 9.37 provide a strong value proposition, but the bearish technical trend (10/100) and poor health score suggest high risk. The overall outlook is neutral until the underlying health metrics stabilize.

Strengths
Exceptional YoY earnings growth of 579.30%
Strong revenue growth (76.40% YoY)
Attractive valuation with a P/E of 9.37 and Forward P/E of 7.94
Risks
Critical financial health warning indicated by Piotroski F-Score of 2/9
Strongly bearish technical trend (10/100)
Lack of dividend income and low dividend strength (0/100)
FRME NEUTRAL

FRME presents as a classic value play with a stable Piotroski F-Score of 4/9 and a Graham Number of $60.54, suggesting the stock is significantly undervalued relative to its defensive fair value. However, this value is offset by negative year-over-year revenue (-4.60%) and earnings growth (-10.90%), alongside a bearish technical trend and insider selling. While the company consistently beats earnings estimates and maintains a healthy dividend payout ratio, the disconnect between its intrinsic value ($26.6) and current price ($40.36) indicates a lack of growth catalysts.

Strengths
Trading below book value (P/B 0.94)
Strong historical track record of earnings beats (3/4 last 4 quarters)
Low P/E ratio (10.62) compared to sector average
Risks
Negative YoY revenue and earnings growth
Bearish insider sentiment with recent selling activity
Technical trend is currently 0/100 (Bearish)

Compare Another Pair

CUBI vs FRME: Head-to-Head Comparison

This page compares Customers Bancorp, Inc. (CUBI) and First Merchants Corporation (FRME) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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