Financial Analysis: FinWise Bancorp (NASDAQ:FINW) vs. First Horizon (NYSE:FHN)

FinWise Bancorp (NASDAQ:FINW) and First Horizon (NYSE:FHN) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FinWise Bancorp	12.72%	7.70%	1.76%
First Horizon	17.10%	10.55%	1.13%

Institutional and Insider Ownership

35.4% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 80.3% of First Horizon shares are owned by institutional investors. 21.3% of FinWise Bancorp shares are owned by company insiders. Comparatively, 1.0% of First Horizon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for FinWise Bancorp and First Horizon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	0	0	4	0	3.00
First Horizon	0	6	10	1	2.71

FinWise Bancorp currently has a consensus target price of $20.88, indicating a potential upside of 7.16%. First Horizon has a consensus target price of $23.34, indicating a potential upside of 4.54%. Given FinWise Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe FinWise Bancorp is more favorable than First Horizon.

Volatility and Risk

FinWise Bancorp has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Valuation & Earnings

This table compares FinWise Bancorp and First Horizon”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$96.84 million	2.72	$12.74 million	$0.97	20.08
First Horizon	$5.03 billion	2.25	$775.00 million	$1.55	14.41

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

Summary

First Horizon beats FinWise Bancorp on 8 of the 15 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 First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.