Comparing FinWise Bancorp (NASDAQ:FINW) & PCB Bancorp (NASDAQ:PCB)

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

Analyst Ratings

This is a summary of current ratings for FinWise Bancorp and PCB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	0	0	4	0	3.00
PCB Bancorp	0	2	0	0	2.00

FinWise Bancorp currently has a consensus price target of $21.00, indicating a potential upside of 42.57%. PCB Bancorp has a consensus price target of $22.00, indicating a potential upside of 19.11%. Given FinWise Bancorp’s stronger consensus rating and higher probable upside, research analysts plainly believe FinWise Bancorp is more favorable than PCB Bancorp.

Profitability

This table compares FinWise Bancorp and PCB Bancorp’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%
PCB Bancorp	13.45%	9.02%	0.90%

Earnings & Valuation

This table compares FinWise Bancorp and PCB Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$82.02 million	2.37	$12.74 million	$0.94	15.67
PCB Bancorp	$99.71 million	2.67	$25.81 million	$1.74	10.61

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

Risk & Volatility

FinWise Bancorp has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, PCB Bancorp has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Institutional & Insider Ownership

35.4% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 33.0% of PCB Bancorp shares are owned by institutional investors. 19.2% of FinWise Bancorp shares are owned by insiders. Comparatively, 25.0% of PCB Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

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 PCB Bancorp

PCB Bancorp operates as the bank holding company for PCB Bank that provides various banking products and services to small to medium-sized businesses, individuals, and professionals in Southern California. The company offers demand, savings, money market, and time deposits, as well as certificates of deposit; and trade finance, remote deposit capture, courier deposit services, positive pay services, zero balance accounts, and sweep accounts. It also provides real estate loans, including commercial and residential, Small Business Administration (SBA) property, and construction loans; commercial and industrial loans, such as commercial term and lines of credit, SBA commercial term, and SBA Paycheck Protection Program loans; and consumer loans comprising residential mortgage; and automobile loans, unsecured lines of credit, and term loans. In addition, the company offers access to account balances, online transfers, and online bill payment and electronic delivery of customer statements; and mobile banking solutions that include remote check deposit and mobile bill pay. Further, it provides automated teller machines; and banking by telephone, mail, personal appointment, debit cards, direct deposit, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company operates through a network of full-service branches in Los Angeles and Orange counties, California; Carrollton and Dallas, Texas; and Englewood Cliffs and Palisade Park, New Jersey, and Bayside, New York. It also operates loan production offices in Los Angeles and Orange Counties, California; Annandale, Virginia; Atlanta, Georgia; Bellevue, Washington; Aurora, Colorado; and Carrollton, Texas. The company was formerly known as Pacific City Financial Corporation and changed its name to PCB Bancorp in July 2019. PCB Bancorp was founded in 2003 and is headquartered in Los Angeles, California.