FinWise Bancorp (NASDAQ:FINW) and RBB Bancorp (NASDAQ:RBB) Head to Head Review

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for RBB Bancorp and FinWise Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBB Bancorp	0	3	3	0	2.50
FinWise Bancorp	1	2	2	0	2.20

RBB Bancorp presently has a consensus target price of $25.50, suggesting a potential downside of 4.74%. FinWise Bancorp has a consensus target price of $18.00, suggesting a potential upside of 40.57%. Given FinWise Bancorp’s higher possible upside, analysts clearly believe FinWise Bancorp is more favorable than RBB Bancorp.

Valuation & Earnings

This table compares RBB Bancorp and FinWise Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBB Bancorp	$238.00 million	1.90	$31.95 million	$2.43	11.02
FinWise Bancorp	$150.96 million	1.18	$16.09 million	$0.96	13.34

RBB Bancorp has higher revenue and earnings than FinWise Bancorp. RBB 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

RBB Bancorp has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RBB Bancorp	17.26%	7.94%	0.99%
FinWise Bancorp	6.76%	7.04%	1.48%

Insider & Institutional Ownership

40.1% of RBB Bancorp shares are owned by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are owned by institutional investors. 6.8% of RBB Bancorp shares are owned by insiders. Comparatively, 22.4% of FinWise Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

RBB Bancorp beats FinWise Bancorp on 10 of the 14 factors compared between the two stocks.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, 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.