Comparing FinWise Bancorp (NASDAQ:FINW) & M&T Bank (NYSE:MTB)

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

Institutional & Insider Ownership

35.4% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 84.7% of M&T Bank shares are owned by institutional investors. 20.8% of FinWise Bancorp shares are owned by company insiders. Comparatively, 0.8% of M&T Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares FinWise Bancorp and M&T Bank’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$85.61 million	1.59	$17.46 million	$1.33	7.97
M&T Bank	$12.75 billion	1.92	$2.74 billion	$14.79	9.93

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

Volatility and Risk

FinWise Bancorp has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, M&T Bank has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for FinWise Bancorp and M&T Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	0	0	1	0	3.00
M&T Bank	0	9	5	0	2.36

FinWise Bancorp currently has a consensus target price of $17.00, suggesting a potential upside of 60.38%. M&T Bank has a consensus target price of $158.48, suggesting a potential upside of 7.88%. Given FinWise Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe FinWise Bancorp is more favorable than M&T Bank.

Profitability

This table compares FinWise Bancorp and M&T Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FinWise Bancorp	20.39%	11.69%	3.36%
M&T Bank	19.52%	10.68%	1.25%

Summary

M&T Bank beats FinWise 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 the United States. The company 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. 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 M&T Bank

M&T Bank Corporation operates as a bank holding company for Manufacturers and Traders Trust Company and Wilmington Trust, National Association that engages in the provision of retail and commercial banking products and services in the United States. The company operates through three segments: Commercial Bank, Retail Bank, and Institutional Services and Wealth Management. It offers a range of credit products and banking services, such as commercial lending and leasing, letters of credits, commercial real estate loans, and credit facilities secured by various commercial real estate to middle-market and large commercial customers. The company also provides customers deposit products, including demand, savings and time accounts, and other services; automobile and recreational finance loans, home equity loans and lines of credit, credit cards, and other loan products, as well as residential mortgage and real estate loans; business loans, cash management, payroll, and direct deposit services to consumers and small businesses through branch network, telephone banking, internet banking, and automated teller machines. In addition, it offers trustee, agency, investment management, security brokerage, and administrative services; personal trust, planning, fiduciary, asset management, family office, and other services; and investment products, including mutual funds and annuities, and other services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients. The company was founded in 1856 and is headquartered in Buffalo, New York.