FinWise Bancorp (NASDAQ:FINW) versus NB Bancorp (NASDAQ:NBBK) Financial Survey

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

Earnings and Valuation

This table compares FinWise Bancorp and NB Bancorp”s gross 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	0.96	$16.09 million	$0.96	10.89
NB Bancorp	$259.05 million	3.77	$50.30 million	$1.66	13.42

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

Analyst Ratings

This is a breakdown of current recommendations for FinWise Bancorp and NB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	1	2	1	0	2.00
NB Bancorp	0	2	2	0	2.50

FinWise Bancorp currently has a consensus target price of $16.00, indicating a potential upside of 53.11%. NB Bancorp has a consensus target price of $25.50, indicating a potential upside of 14.43%. Given FinWise Bancorp’s higher probable upside, research analysts plainly believe FinWise Bancorp is more favorable than NB Bancorp.

Insider and Institutional Ownership

35.4% of FinWise Bancorp shares are held by institutional investors. 22.4% of FinWise Bancorp shares are held by insiders. Comparatively, 5.1% of NB Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares FinWise Bancorp and NB 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%
NB Bancorp	14.86%	9.75%	1.14%

Summary

NB Bancorp beats FinWise Bancorp on 9 of the 13 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 NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.