Contrasting Pacific Valley Bancorp (OTCMKTS:PVBK) and FinWise Bancorp (NASDAQ:FINW)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for FinWise Bancorp and Pacific Valley Bancorp, as reported by MarketBeat.com.

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

FinWise Bancorp currently has a consensus price target of $22.00, suggesting a potential upside of 57.14%. Given FinWise Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe FinWise Bancorp is more favorable than Pacific Valley Bancorp.

Risk and Volatility

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$149.99 million	1.28	$16.09 million	$1.10	12.73
Pacific Valley Bancorp	$33.09 million	1.61	$3.59 million	$0.72	13.60

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

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

Institutional & Insider Ownership

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

Summary

FinWise Bancorp beats Pacific Valley Bancorp on 11 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 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.