Head-To-Head Review: FinWise Bancorp (NASDAQ:FINW) and Richmond Mutual Bancorporation (NASDAQ:RMBI)

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

Analyst Ratings

This is a summary of recent recommendations for FinWise Bancorp and Richmond Mutual Bancorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	0	0	1	0	3.00
Richmond Mutual Bancorporation	0	0	0	0	N/A

FinWise Bancorp presently has a consensus target price of $17.00, suggesting a potential upside of 4.94%. Given FinWise Bancorp’s higher probable upside, equities research analysts clearly believe FinWise Bancorp is more favorable than Richmond Mutual Bancorporation.

Institutional and Insider Ownership

35.4% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 26.5% of Richmond Mutual Bancorporation shares are owned by institutional investors. 20.8% of FinWise Bancorp shares are owned by insiders. Comparatively, 8.2% of Richmond Mutual Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FinWise Bancorp	16.64%	9.75%	2.61%
Richmond Mutual Bancorporation	10.37%	6.44%	0.57%

Earnings and Valuation

This table compares FinWise Bancorp and Richmond Mutual Bancorporation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$79.56 million	2.60	$17.46 million	$1.29	12.56
Richmond Mutual Bancorporation	$42.23 million	3.43	$9.49 million	$0.87	15.06

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

Volatility & Risk

FinWise Bancorp has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Richmond Mutual Bancorporation has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Summary

FinWise Bancorp beats Richmond Mutual Bancorporation on 11 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 Richmond Mutual Bancorporation

Richmond Mutual Bancorporation, Inc. operates as the bank holding company for First Bank Richmond that provides various banking services. It accepts various deposits, including savings deposit accounts, money market accounts, NOW and demand accounts, and certificates of deposit. The company also offers a range of lending products, such as multi-family and commercial real estate loans, commercial and industrial loans, construction and development loans, residential real estate loans, and consumer loans. In addition, it engages in the lease financing business; and provision of fee-based financial services comprising trust and estate administration, investment management, retirement plan administration, and private banking services. The company was founded in 1887 and is headquartered in Richmond, Indiana.