FinWise Bancorp (NASDAQ:FINW) vs. Bank of Marin Bancorp (NASDAQ:BMRC) Financial Review

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

Institutional & Insider Ownership

52.3% of Bank of Marin Bancorp shares are held by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are held by institutional investors. 4.9% of Bank of Marin Bancorp shares are held by company insiders. Comparatively, 22.4% of FinWise Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Bank of Marin Bancorp and FinWise Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Marin Bancorp	0	5	2	0	2.29
FinWise Bancorp	0	3	1	0	2.25

Bank of Marin Bancorp currently has a consensus price target of $32.20, indicating a potential upside of 13.02%. FinWise Bancorp has a consensus price target of $15.50, indicating a potential upside of 6.68%. Given Bank of Marin Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Bank of Marin Bancorp is more favorable than FinWise Bancorp.

Profitability

This table compares Bank of Marin Bancorp and FinWise Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Marin Bancorp	-6.48%	9.48%	0.95%
FinWise Bancorp	7.03%	9.78%	2.06%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Marin Bancorp	$163.98 million	2.81	-$35.67 million	($0.76)	-37.49
FinWise Bancorp	$235.05 million	0.86	$16.09 million	$1.35	10.76

FinWise Bancorp has higher revenue and earnings than Bank of Marin Bancorp. Bank of Marin 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.

Volatility and Risk

Bank of Marin Bancorp has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

About Bank of Marin Bancorp

Bank of Marin Bancorp is a bank holding company and the parent of Bank of Marin, a community bank founded in 1990. The bank provides personal and business banking services to individuals, businesses, and nonprofit organizations in Northern California. Its offerings include checking and savings accounts, certificates of deposit, commercial and real estate lending, residential mortgages, and cash-management services. Bank of Marin also provides wealth management and trust services. Based in Novato, California, the bank serves communities across the San Francisco Bay Area and the Sacramento region.

About FinWise Bancorp

FinWise Bancorp is the bank holding company for FinWise Bank, a Utah-chartered financial institution headquartered in Murray, Utah. Through its subsidiary, the company provides banking and lending services to consumers, small businesses and commercial customers. FinWise Bank operates a strategic lending platform that partners with fintech companies, loan originators and other third parties to support the origination and servicing of consumer and small-business loans. Its offerings also include commercial lending, small business lending, Small Business Administration loans, commercial real estate financing and other credit products.