Analyzing FinWise Bancorp (NASDAQ:FINW) & Mission Valley Bancorp (OTCMKTS:MVLY)

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

Risk and Volatility

Mission Valley Bancorp has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Profitability

This table compares Mission Valley Bancorp and FinWise Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mission Valley Bancorp	N/A	N/A	N/A
FinWise Bancorp	12.13%	8.31%	1.82%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Mission Valley Bancorp and FinWise Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mission Valley Bancorp	0	0	0	0	0.00
FinWise Bancorp	0	1	4	0	2.80

FinWise Bancorp has a consensus target price of $21.75, suggesting a potential upside of 22.05%. Given FinWise Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe FinWise Bancorp is more favorable than Mission Valley Bancorp.

Institutional and Insider Ownership

5.7% of Mission Valley Bancorp shares are held by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are held by institutional investors. 21.3% of FinWise Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Mission Valley Bancorp and FinWise Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mission Valley Bancorp	N/A	N/A	$6.20 million	$1.80	10.00
FinWise Bancorp	$96.84 million	2.50	$12.74 million	$1.06	16.81

FinWise Bancorp has higher revenue and earnings than Mission Valley Bancorp. Mission Valley 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.

Summary

FinWise Bancorp beats Mission Valley Bancorp on 12 of the 13 factors compared between the two stocks.

About Mission Valley Bancorp

Mission Valley Bancorp operates as the bank holding company for Mission Valley Bank and Mission SBA Loan Servicing LLC that provides various banking products and services to individuals and corporate customers. The company's deposit products include non-interest-bearing and interest-bearing demand deposits, savings, and time deposits; and certificates of deposit. It also offers accounts receivable loans, advanced restaurant financing loans, commercial loans, real estate loans, small business administration loans, and term loans; consumer loans; and overdraft facilities; as well as credit and debit cards. In addition, the company provides lending services, such as underwriting, processing, closing, servicing, and referral/replacement services to other financial institutions. Mission Valley Bancorp was founded in 2001 and is headquartered in Sun Valley, California.

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.