Pacific Alliance Bank (OTCMKTS:PFBN) and FinWise Bancorp (NASDAQ:FINW) Head to Head Review

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

Institutional and Insider Ownership

35.4% of FinWise Bancorp shares are held by institutional investors. 21.3% 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 will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FinWise Bancorp	12.13%	8.31%	1.82%
Pacific Alliance Bank	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for FinWise Bancorp and Pacific Alliance Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	0	1	3	0	2.75
Pacific Alliance Bank	0	0	0	0	0.00

FinWise Bancorp presently has a consensus target price of $22.00, indicating a potential upside of 24.93%. Given FinWise Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe FinWise Bancorp is more favorable than Pacific Alliance Bank.

Valuation and Earnings

This table compares FinWise Bancorp and Pacific Alliance Bank”s gross 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	2.47	$12.74 million	$1.06	16.61
Pacific Alliance Bank	$23.57 million	1.15	$1.43 million	N/A	N/A

FinWise Bancorp has higher revenue and earnings than Pacific Alliance Bank.

Risk & Volatility

FinWise Bancorp has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Pacific Alliance Bank has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.

Summary

FinWise Bancorp beats Pacific Alliance Bank on 12 of the 12 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 Alliance Bank

Pacific Alliance Bank provides commercial and consumer banking products and services for small to midsize business owners, and employees in the United States. It offers checking, money market, savings, and individual retirement accounts; and certificates of deposit. The company also provides mortgage, commercial, term, commercial real estate, construction, and SBA loans; and lines of credit. In addition, it offers personal and business online services; and casher checks, check reorder, night deposit, direct deposit, safe deposit boxes, positive pay/check reconciliation, wire, debit card, and other services. The company was founded in 2006 and is headquartered in San Gabriel, California.