Reviewing FinWise Bancorp (NASDAQ:FINW) and ServisFirst Bancshares (NYSE:SFBS)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServisFirst Bancshares	$619.37 million	6.92	$276.60 million	$2.93	13.38
FinWise Bancorp	$150.96 million	0.99	$16.09 million	$0.96	11.23

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ServisFirst Bancshares	30.95%	17.42%	1.82%
FinWise Bancorp	6.76%	7.04%	1.48%

Insider & Institutional Ownership

67.3% of ServisFirst Bancshares shares are held by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are held by institutional investors. 6.5% of ServisFirst Bancshares 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ServisFirst Bancshares and FinWise Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServisFirst Bancshares	0	1	4	0	2.80
FinWise Bancorp	1	2	2	0	2.20

ServisFirst Bancshares presently has a consensus price target of $46.50, suggesting a potential upside of 18.64%. FinWise Bancorp has a consensus price target of $18.00, suggesting a potential upside of 66.90%. Given FinWise Bancorp’s higher possible upside, analysts plainly believe FinWise Bancorp is more favorable than ServisFirst Bancshares.

Risk & Volatility

ServisFirst Bancshares has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Summary

ServisFirst Bancshares beats FinWise Bancorp on 12 of the 14 factors compared between the two stocks.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, including seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It also offers other banking products and services comprising telephone and mobile banking, Internet banking, direct deposit, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit and credit card systems; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama.

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.