Reviewing FinWise Bancorp (NASDAQ:FINW) & Pacific Valley Bancorp (OTCMKTS:PVBK)

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

Earnings and Valuation

This table compares Pacific Valley Bancorp and FinWise Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Valley Bancorp	$33.09 million	1.58	$3.59 million	$0.72	13.38
FinWise Bancorp	$150.96 million	1.31	$16.09 million	$1.10	13.07

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pacific Valley Bancorp	11.23%	N/A	N/A
FinWise Bancorp	9.05%	8.24%	1.73%

Risk & Volatility

Pacific Valley Bancorp has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Institutional & Insider Ownership

2.8% of Pacific Valley Bancorp shares are owned by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are owned by institutional investors. 22.4% of FinWise Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Pacific Valley Bancorp and FinWise Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Valley Bancorp	0	0	0	0	0.00
FinWise Bancorp	1	1	1	0	2.00

FinWise Bancorp has a consensus price target of $22.00, suggesting a potential upside of 52.99%. Given FinWise Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe FinWise Bancorp is more favorable than Pacific Valley Bancorp.

Summary

FinWise Bancorp beats Pacific Valley Bancorp on 11 of the 14 factors compared between the two stocks.

About Pacific Valley Bancorp

Pacific Valley Bancorp operates as the bank holding company for Pacific Valley Bank that provides various banking products and services in the United States. The company offers personal and business banking, including checking accounts, savings and money market accounts, and certificates of deposit; and online solutions, such as online and mobile banking, bill pay, remote deposit capture, positive pay, e-statements, and order checks. It also provides commercial or agriculture lines of credit, commercial or agriculture terms loans, commercial constructions loans, agriculture production lending, and government guaranteed loan programs; and debit card, incoming wire instructions, ATM locator, fraud prevention, identity theft, and FDIC insurance estimator services. The company was founded in 2004 and is headquartered in Salinas, 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.