Analyzing M&T Bank (NYSE:MTB) & FinWise Bancorp (NASDAQ:FINW)

M&T Bank (NYSE:MTB) and FinWise Bancorp (NASDAQ:FINW) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for M&T Bank and FinWise Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M&T Bank	0	9	5	0	2.36
FinWise Bancorp	0	0	1	0	3.00

M&T Bank presently has a consensus target price of $158.48, suggesting a potential upside of 7.94%. FinWise Bancorp has a consensus target price of $17.00, suggesting a potential upside of 63.93%. Given FinWise Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe FinWise Bancorp is more favorable than M&T Bank.

Insider and Institutional Ownership

84.7% of M&T Bank shares are owned by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are owned by institutional investors. 0.8% of M&T Bank shares are owned by company insiders. Comparatively, 20.8% of FinWise Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares M&T Bank and FinWise Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M&T Bank	$12.75 billion	1.92	$2.74 billion	$14.79	9.93
FinWise Bancorp	$76.24 million	1.74	$17.46 million	$1.33	7.80

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

Risk & Volatility

M&T Bank has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Profitability

This table compares M&T Bank and FinWise Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M&T Bank	19.52%	10.68%	1.25%
FinWise Bancorp	20.39%	11.69%	3.36%

Summary

M&T Bank beats FinWise Bancorp on 8 of the 14 factors compared between the two stocks.

About M&T Bank

M&T Bank Corporation operates as a bank holding company for Manufacturers and Traders Trust Company and Wilmington Trust, National Association that engages in the provision of retail and commercial banking products and services in the United States. The company operates through three segments: Commercial Bank, Retail Bank, and Institutional Services and Wealth Management. It offers a range of credit products and banking services, such as commercial lending and leasing, letters of credits, commercial real estate loans, and credit facilities secured by various commercial real estate to middle-market and large commercial customers. The company also provides customers deposit products, including demand, savings and time accounts, and other services; automobile and recreational finance loans, home equity loans and lines of credit, credit cards, and other loan products, as well as residential mortgage and real estate loans; business loans, cash management, payroll, and direct deposit services to consumers and small businesses through branch network, telephone banking, internet banking, and automated teller machines. In addition, it offers trustee, agency, investment management, security brokerage, and administrative services; personal trust, planning, fiduciary, asset management, family office, and other services; and investment products, including mutual funds and annuities, and other services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients. The company was founded in 1856 and is headquartered in Buffalo, New York.

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 the United States. The company offers various deposit products, including interest and noninterest bearing demand, NOW, money market, 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.