FinWise Bancorp (NASDAQ:FINW – Get Free Report) and MetroCity Bankshares (NASDAQ:MCBS – Get Free Report) are both small-cap financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.
Insider & Institutional Ownership
35.4% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are owned by institutional investors. 20.8% of FinWise Bancorp shares are owned by insiders. Comparatively, 27.5% of MetroCity Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
FinWise Bancorp has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FinWise Bancorp | 0 | 0 | 1 | 0 | 3.00 |
| MetroCity Bankshares | 0 | 1 | 0 | 0 | 2.00 |
FinWise Bancorp presently has a consensus target price of $17.00, indicating a potential upside of 59.62%. MetroCity Bankshares has a consensus target price of $28.00, indicating a potential upside of 16.33%. Given FinWise Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe FinWise Bancorp is more favorable than MetroCity Bankshares.
Profitability
This table compares FinWise Bancorp and MetroCity Bankshares’ 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% |
| MetroCity Bankshares | 23.26% | 13.30% | 1.44% |
Valuation and Earnings
This table compares FinWise Bancorp and MetroCity Bankshares’ 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 | 8.01 |
| MetroCity Bankshares | $211.03 million | 2.88 | $51.61 million | $1.97 | 12.22 |
MetroCity Bankshares has higher revenue and earnings than FinWise Bancorp. FinWise Bancorp is trading at a lower price-to-earnings ratio than MetroCity Bankshares, indicating that it is currently the more affordable of the two stocks.
Summary
MetroCity Bankshares 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 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 MetroCity Bankshares
MetroCity Bankshares, Inc. operates as the bank holding company for Metro City Bank that engages in the provision of banking products and services in the United States. It offers customary banking services, such as consumer and commercial checking accounts, savings, and money market accounts, as well as certificates of deposit. The company also provides commercial and consumer loans, including single family residential loans; construction and development, and owner and non-owner occupied commercial real estate loans; letters of credit; and commercial and industrial loans, residential mortgage loans, and SBA loans. In addition, it offers online banking services, which include access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions, such as remote check deposit with mobile bill pay; and automated teller machines and telephone banking services. Further, it provides debit cards for checking customers, direct deposits, and cashier's checks; treasury management services, including wire transfer, automated clearing house, and stop payments services; and cash management deposit products, such as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. The company was founded in 2006 and is headquartered in Atlanta, Georgia.
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