Veritex (VBTX) & CU Bancorp (CUNB) Critical Comparison

Veritex (NASDAQ: VBTX) and CU Bancorp (NASDAQ:CUNB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares Veritex and CU Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veritex 18.67% 5.71% 0.97%
CU Bancorp 29.03% 10.78% 1.21%

Valuation and Earnings

This table compares Veritex and CU Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veritex $87.13 million 7.74 $16.26 million $0.87 32.14
CU Bancorp N/A N/A N/A $1.67 22.46

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

Insider and Institutional Ownership

62.0% of Veritex shares are held by institutional investors. Comparatively, 56.4% of CU Bancorp shares are held by institutional investors. 6.9% of Veritex shares are held by company insiders. Comparatively, 9.1% of CU Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Veritex and CU Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veritex 0 0 4 0 3.00
CU Bancorp 0 1 3 0 2.75

Veritex currently has a consensus price target of $32.13, indicating a potential upside of 14.90%. CU Bancorp has a consensus price target of $42.50, indicating a potential upside of 13.33%. Given Veritex’s stronger consensus rating and higher possible upside, equities analysts clearly believe Veritex is more favorable than CU Bancorp.

Summary

Veritex beats CU Bancorp on 6 of the 11 factors compared between the two stocks.

About Veritex

Veritex Holdings, Inc. is a bank holding company. The Company, through its subsidiary, Veritex Community Bank (the Bank), a Texas state chartered bank, provides relationship-driven commercial banking products and services tailored to meet the needs of small to medium-sized businesses and professionals. It operates through community banking segment. The Bank provides a range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as automated teller machines, and banking by telephone, mail and personal appointment. It also offers debit cards, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, including wire transfer services and automated clearinghouse services.

About CU Bancorp

CU Bancorp is the bank holding company of California United Bank (the Bank). The Bank is a full-service commercial bank offering a range of banking products and services designed for small and medium-sized businesses, non-profit organizations, business owners and entrepreneurs, and the professional community. The Bank provides a range of deposit products, such as savings accounts, certificates of deposit and money market accounts, and loan products. The Bank also provides cash management services, online banking, commercial credit cards and other primarily business-oriented products. Its other services include commercial and stand-by letters of credit, domestic and international wire transfers, on site Automated Teller Machines (ATMs), and Visa Debit Cards and ATM cards. It also provides bank-by-mail services, courier services, armored transport, lock box, cash vault, cash management services, telephone banking, night depositories, commercial credit cards and international services.

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