Head-To-Head Survey: Bank of Marin Bancorp (NASDAQ:BMRC) versus FinWise Bancorp (NASDAQ:FINW)

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

Institutional and Insider Ownership

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$150.96 million	1.26	$16.09 million	$1.35	10.13
Bank of Marin Bancorp	$163.98 million	2.81	-$35.67 million	($0.76)	-37.42

FinWise Bancorp has higher earnings, but lower revenue 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FinWise Bancorp	7.03%	9.78%	2.06%
Bank of Marin Bancorp	-6.48%	9.38%	0.95%

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for FinWise Bancorp and Bank of Marin Bancorp, as reported by MarketBeat.com.

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

FinWise Bancorp currently has a consensus target price of $15.50, indicating a potential upside of 13.30%. Bank of Marin Bancorp has a consensus target price of $32.20, indicating a potential upside of 13.22%. Given FinWise Bancorp’s higher probable upside, research analysts clearly believe FinWise Bancorp is more favorable than Bank of Marin Bancorp.

Summary

FinWise Bancorp beats Bank of Marin Bancorp on 8 of the 14 factors compared between the two stocks.

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.

About Bank of Marin Bancorp

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States. The company offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry, and insured cash sweep services. It also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, the company offers merchant and payroll services; commercial equipment leasing program; payment solutions; treasury management services; credit cards; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, it provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. The company was incorporated in 1989 and is headquartered in Novato, California.