FinWise Bancorp (NASDAQ:FINW – Get Free Report) and Prosperity Bancshares (NYSE:PB – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.
Volatility & Risk
FinWise Bancorp has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Prosperity Bancshares has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Profitability
This table compares FinWise Bancorp and Prosperity Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FinWise Bancorp | 10.66% | 8.82% | 1.90% |
| Prosperity Bancshares | 31.22% | 7.11% | 1.40% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FinWise Bancorp | 0 | 1 | 1 | 1 | 3.00 |
| Prosperity Bancshares | 1 | 7 | 7 | 0 | 2.40 |
FinWise Bancorp presently has a consensus target price of $22.00, indicating a potential upside of 25.50%. Prosperity Bancshares has a consensus target price of $78.77, indicating a potential upside of 5.12%. Given FinWise Bancorp’s stronger consensus rating and higher possible upside, research analysts plainly believe FinWise Bancorp is more favorable than Prosperity Bancshares.
Insider and Institutional Ownership
35.4% of FinWise Bancorp shares are held by institutional investors. Comparatively, 80.7% of Prosperity Bancshares shares are held by institutional investors. 21.3% of FinWise Bancorp shares are held by company insiders. Comparatively, 4.2% of Prosperity Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares FinWise Bancorp and Prosperity Bancshares”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FinWise Bancorp | $150.96 million | 1.58 | $16.09 million | $1.13 | 15.51 |
| Prosperity Bancshares | $1.74 billion | 4.09 | $542.84 million | $5.73 | 13.08 |
Prosperity Bancshares has higher revenue and earnings than FinWise Bancorp. Prosperity Bancshares is trading at a lower price-to-earnings ratio than FinWise Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
FinWise Bancorp beats Prosperity Bancshares on 8 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 Prosperity Bancshares
Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. The company was incorporated in 1983 and is headquartered in Houston, Texas.
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