Analyzing FinWise Bancorp (NASDAQ:FINW) & Northern Trust (NASDAQ:NTRS)

FinWise Bancorp (NASDAQ:FINW – Get Rating) and Northern Trust (NASDAQ:NTRS – Get Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Volatility and Risk

FinWise Bancorp has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Northern Trust has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FinWise Bancorp	23.61%	14.22%	4.90%
Northern Trust	14.73%	14.30%	0.95%

Insider and Institutional Ownership

25.5% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 81.4% of Northern Trust shares are owned by institutional investors. 24.4% of FinWise Bancorp shares are owned by company insiders. Comparatively, 0.6% of Northern Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares FinWise Bancorp and Northern Trust’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$89.74 million	1.11	$25.11 million	$1.46	5.32
Northern Trust	$7.75 billion	1.96	$1.34 billion	$5.88	12.42

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

Analyst Ratings

This is a summary of current ratings and target prices for FinWise Bancorp and Northern Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	0	0	1	0	3.00
Northern Trust	1	9	4	0	2.21

FinWise Bancorp presently has a consensus price target of $10.00, indicating a potential upside of 28.70%. Northern Trust has a consensus price target of $97.29, indicating a potential upside of 33.22%. Given Northern Trust’s higher probable upside, analysts clearly believe Northern Trust is more favorable than FinWise Bancorp.

Summary

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

About FinWise Bancorp

(Get Rating)

FinWise Bancorp operates as the bank holding company for FinWise Bank that provides various banking products and services to individual and corporate customers. It offers various deposit products, including interest and noninterest bearing demand, NOW, money market, and checking and savings accounts, as well as time deposits and certificates of deposits. The company also provides small business administration, residential and commercial real estate, consumer, and commercial non-real estate loans. In addition, it offers debit cards, remote deposit capture, online banking, mobile banking, and direct deposit services; and cash management and treasury services. The company operates one full-service banking location in Sandy, Utah; and a loan production office in Rockville Centre, New York. FinWise Bancorp was founded in 1999 and is headquartered in Murray, Utah.

About Northern Trust

(Get Rating)

Northern Trust Corp. is a financial holding company, which engages in the provision of asset servicing, fund administration, asset management, fiduciary, and banking solutions for corporations, institutions, families, and individuals. It operates through the following segments: Corporate & Institutional Services and Wealth Management. The Corporate & Institutional Services Segment offers asset servicing, brokerage, banking and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies and sovereign wealth funds. The Wealth Management Segment includes trust, investment management, custody, and philanthropic services, financial consulting, guardianship and estate administration, family business consulting, family financial education, brokerage services and private and business banking. The company was founded in 1971 and is headquartered in Chicago, IL.