Critical Contrast: Cullen/Frost Bankers (NYSE:CFR) vs. FinWise Bancorp (NASDAQ:FINW)

Cullen/Frost Bankers (NYSE:CFR) and FinWise Bancorp (NASDAQ:FINW) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Earnings and Valuation

This table compares Cullen/Frost Bankers and FinWise Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cullen/Frost Bankers	$2.85 billion	2.91	$582.54 million	$9.29	13.87
FinWise Bancorp	$96.84 million	2.70	$12.74 million	$0.97	19.93

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

Profitability

This table compares Cullen/Frost Bankers and FinWise Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cullen/Frost Bankers	21.20%	15.46%	1.18%
FinWise Bancorp	12.72%	7.70%	1.76%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cullen/Frost Bankers and FinWise Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cullen/Frost Bankers	3	9	2	0	1.93
FinWise Bancorp	0	0	4	0	3.00

Cullen/Frost Bankers presently has a consensus price target of $133.71, indicating a potential upside of 3.77%. FinWise Bancorp has a consensus price target of $20.88, indicating a potential upside of 7.99%. Given FinWise Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe FinWise Bancorp is more favorable than Cullen/Frost Bankers.

Insider & Institutional Ownership

86.9% of Cullen/Frost Bankers shares are owned by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are owned by institutional investors. 1.2% of Cullen/Frost Bankers shares are owned by company insiders. Comparatively, 21.3% of FinWise Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Cullen/Frost Bankers has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, Texas.

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.