Prosperity Bancshares (NYSE:PB – Get Free Report) and FinWise Bancorp (NASDAQ:FINW – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Earnings and Valuation
This table compares Prosperity Bancshares and FinWise Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prosperity Bancshares | $1.20 billion | 6.02 | $542.84 million | $5.73 | 13.28 |
| FinWise Bancorp | $150.96 million | 1.57 | $16.09 million | $1.13 | 15.48 |
Analyst Ratings
This is a summary of recent ratings for Prosperity Bancshares and FinWise Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prosperity Bancshares | 1 | 7 | 7 | 0 | 2.40 |
| FinWise Bancorp | 0 | 1 | 1 | 1 | 3.00 |
Prosperity Bancshares currently has a consensus price target of $78.77, suggesting a potential upside of 3.54%. FinWise Bancorp has a consensus price target of $22.00, suggesting a potential upside of 25.79%. Given FinWise Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe FinWise Bancorp is more favorable than Prosperity Bancshares.
Volatility and Risk
Prosperity Bancshares has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
Profitability
This table compares Prosperity Bancshares and FinWise Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prosperity Bancshares | 31.22% | 7.11% | 1.40% |
| FinWise Bancorp | 10.66% | 8.82% | 1.90% |
Insider and Institutional Ownership
80.7% of Prosperity Bancshares shares are owned by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are owned by institutional investors. 4.2% of Prosperity Bancshares shares are owned by company insiders. Comparatively, 21.3% of FinWise Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
FinWise Bancorp beats Prosperity Bancshares on 8 of the 15 factors compared between the two stocks.
About Prosperity Bancshares
Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. The company was incorporated in 1983 and is headquartered in Houston, Texas.
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.
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