Comparing First BanCorp. (NYSE:FBP) and FinWise Bancorp (NASDAQ:FINW)

First BanCorp. (NYSE:FBP) and FinWise Bancorp (NASDAQ:FINW) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for First BanCorp. and FinWise Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First BanCorp.	0	2	4	3	3.11
FinWise Bancorp	0	2	2	0	2.50

First BanCorp. currently has a consensus target price of $28.75, suggesting a potential downside of 0.59%. FinWise Bancorp has a consensus target price of $19.00, suggesting a potential upside of 38.08%. Given FinWise Bancorp’s higher probable upside, analysts plainly believe FinWise Bancorp is more favorable than First BanCorp..

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First BanCorp.	29.24%	18.03%	1.84%
FinWise Bancorp	6.76%	7.10%	1.48%

Insider and Institutional Ownership

97.9% of First BanCorp. shares are held by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are held by institutional investors. 1.9% of First BanCorp. shares are held by insiders. Comparatively, 22.4% of FinWise Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares First BanCorp. and FinWise Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First BanCorp.	$1.26 billion	3.56	$344.87 million	$2.37	12.20
FinWise Bancorp	$150.96 million	1.25	$16.09 million	$0.96	14.33

First BanCorp. has higher revenue and earnings than FinWise Bancorp. First 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.

Risk & Volatility

First BanCorp. has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Summary

First BanCorp. beats FinWise Bancorp on 12 of the 15 factors compared between the two stocks.

About First BanCorp.

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides a range of financial products and services to consumers and commercial customers. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans, as well as other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; and purchase of mortgage loans from branch and mortgage bankers. The Consumer (Retail) Banking segment provides auto loans, finance leases, boat and personal loans, credit card loans, and lines of credit; and interest-bearing and non-interest-bearing checking and savings accounts, and individual retirement accounts and retail certificates of deposit (CDs), as well as insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans, residential mortgages, term and construction loan, home equity loans, lines of credit, FHLB advances, and brokered CDs; and internet banking, cash management, remote deposit capture, and automated clearing house transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.

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.