Contrasting RBB Bancorp (NASDAQ:RBB) & FinWise Bancorp (NASDAQ:FINW)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FinWise Bancorp	6.76%	7.04%	1.48%
RBB Bancorp	17.26%	7.94%	0.99%

Risk & Volatility

FinWise Bancorp has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, RBB Bancorp has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares FinWise Bancorp and RBB Bancorp”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	$150.96 million	1.05	$16.09 million	$0.96	11.86
RBB Bancorp	$132.74 million	3.35	$31.95 million	$2.43	10.81

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

Insider & Institutional Ownership

35.4% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 40.1% of RBB Bancorp shares are owned by institutional investors. 22.4% of FinWise Bancorp shares are owned by company insiders. Comparatively, 6.8% of RBB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for FinWise Bancorp and RBB Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	1	2	2	0	2.20
RBB Bancorp	0	3	3	0	2.50

FinWise Bancorp currently has a consensus target price of $18.00, indicating a potential upside of 58.03%. RBB Bancorp has a consensus target price of $25.50, indicating a potential downside of 2.97%. Given FinWise Bancorp’s higher probable upside, research analysts plainly believe FinWise Bancorp is more favorable than RBB Bancorp.

Summary

RBB Bancorp beats FinWise Bancorp on 9 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 RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.