FinWise Bancorp (NASDAQ:FINW – Get Free Report) and Richmond Mutual Bancorporation (NASDAQ:RMBI – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Analyst Ratings
This is a breakdown of recent ratings and price targets for FinWise Bancorp and Richmond Mutual Bancorporation, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
FinWise Bancorp | 0 | 0 | 1 | 0 | 3.00 |
Richmond Mutual Bancorporation | 0 | 0 | 0 | 0 | N/A |
FinWise Bancorp currently has a consensus price target of $17.00, indicating a potential upside of 5.59%. Given FinWise Bancorp’s higher probable upside, equities analysts clearly believe FinWise Bancorp is more favorable than Richmond Mutual Bancorporation.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
FinWise Bancorp | $79.56 million | 2.59 | $17.46 million | $1.29 | 12.48 |
Richmond Mutual Bancorporation | $72.02 million | 1.98 | $9.49 million | $0.81 | 16.05 |
FinWise Bancorp has higher revenue and earnings than Richmond Mutual Bancorporation. FinWise Bancorp is trading at a lower price-to-earnings ratio than Richmond Mutual Bancorporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
FinWise Bancorp has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.
Institutional & Insider Ownership
35.4% of FinWise Bancorp shares are held by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are held by institutional investors. 20.8% of FinWise Bancorp shares are held by insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares FinWise Bancorp and Richmond Mutual Bancorporation’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
FinWise Bancorp | 16.64% | 9.75% | 2.61% |
Richmond Mutual Bancorporation | 10.37% | 6.44% | 0.57% |
Summary
FinWise Bancorp beats Richmond Mutual Bancorporation on 12 of the 13 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 Richmond Mutual Bancorporation
Richmond Mutual Bancorporation, Inc. operates as the bank holding company for First Bank Richmond that provides various banking services. It accepts various deposits, including savings deposit accounts, money market accounts, NOW and demand accounts, and certificates of deposit. The company also offers a range of lending products, such as multi-family and commercial real estate loans, commercial and industrial loans, construction and development loans, residential real estate loans, and consumer loans. In addition, it engages in the lease financing business; and provision of fee-based financial services comprising trust and estate administration, investment management, retirement plan administration, and private banking services. The company was founded in 1887 and is headquartered in Richmond, Indiana.
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