Head to Head Survey: FinWise Bancorp (NASDAQ:FINW) & Wintrust Financial (NASDAQ:WTFC)

FinWise Bancorp (NASDAQ:FINW) and Wintrust Financial (NASDAQ:WTFC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

This table compares FinWise Bancorp and Wintrust Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$82.02 million	2.29	$12.74 million	$0.94	15.11
Wintrust Financial	$2.49 billion	3.11	$695.04 million	$10.11	11.46

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for FinWise Bancorp and Wintrust Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	0	0	4	0	3.00
Wintrust Financial	0	2	10	1	2.92

FinWise Bancorp presently has a consensus price target of $20.88, suggesting a potential upside of 47.01%. Wintrust Financial has a consensus price target of $133.54, suggesting a potential upside of 15.28%. Given FinWise Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe FinWise Bancorp is more favorable than Wintrust Financial.

Insider & Institutional Ownership

35.4% of FinWise Bancorp shares are held by institutional investors. Comparatively, 93.5% of Wintrust Financial shares are held by institutional investors. 19.2% of FinWise Bancorp shares are held by insiders. Comparatively, 1.0% of Wintrust Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares FinWise Bancorp and Wintrust Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FinWise Bancorp	13.23%	7.67%	2.00%
Wintrust Financial	17.52%	12.60%	1.13%

Volatility and Risk

FinWise Bancorp has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Wintrust Financial has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Summary

Wintrust Financial beats FinWise Bancorp on 10 of the 15 factors compared between the two stocks.

About FinWise Bancorp

FinWise Bancorp operates as the bank holding company for FinWise Bank that provides various banking products and services to individual and corporate customers in Utah. The company offers various deposit products, including interest and noninterest bearing demand accounts, health savings account demand deposits, NOW and money market accounts, and checking and savings accounts, as well as time deposits and certificates of deposits. It also provides loans, including consumer, small business administration, commercial, commercial real estate, and residential real estate loans. In addition, the company offers debit cards, remote deposit capture, online banking, mobile banking, and direct deposit services; and business accounts and cash management services, such as business checking and savings accounts, and treasury services. FinWise Bancorp was founded in 1999 and is headquartered in Murray, Utah.

About Wintrust Financial

Wintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services. It also engages in the retail origination and purchase of residential mortgages; and provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional clients. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; other specialty finance services; equipment financing through structured loan and lease products; and property and casualty premium financing; as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides wealth management services, such as trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.