FinWise Bancorp (NASDAQ:FINW – Get Free Report) and Midland States Bancorp (NASDAQ:MSBI – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
FinWise Bancorp has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Midland States Bancorp has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.
Profitability
This table compares FinWise Bancorp and Midland States Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FinWise Bancorp | 13.23% | 7.67% | 2.00% |
| Midland States Bancorp | -2.74% | -1.95% | -0.17% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FinWise Bancorp | 0 | 0 | 3 | 0 | 3.00 |
| Midland States Bancorp | 0 | 4 | 0 | 0 | 2.00 |
FinWise Bancorp currently has a consensus target price of $21.67, suggesting a potential upside of 10.01%. Midland States Bancorp has a consensus target price of $23.50, suggesting a potential upside of 22.46%. Given Midland States Bancorp’s higher possible upside, analysts plainly believe Midland States Bancorp is more favorable than FinWise Bancorp.
Insider & Institutional Ownership
35.4% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 60.9% of Midland States Bancorp shares are owned by institutional investors. 19.2% of FinWise Bancorp shares are owned by insiders. Comparatively, 5.6% of Midland States Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares FinWise Bancorp and Midland States 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 | $81.40 million | 3.20 | $12.74 million | $0.94 | 20.95 |
| Midland States Bancorp | $299.70 million | 1.37 | -$13.43 million | ($1.05) | -18.28 |
FinWise Bancorp has higher earnings, but lower revenue than Midland States Bancorp. Midland States Bancorp is trading at a lower price-to-earnings ratio than FinWise Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
FinWise Bancorp beats Midland States 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 Midland States Bancorp
Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Wealth Management, and Other segments. The company provides a range of financial products and services to consumers and businesses, including commercial loans to finance agricultural equipment and production; and commercial real estate loans for owner occupied offices, warehouses and production facilities, office buildings, hotels, mixed-use residential and commercial facilities, retail centers, multifamily properties, and assisted living facilities. In addition, it offers construction and land development loans, such as real estate investment properties and residential developments, and lesser extent loans; and residential real estate loans, which includes first and second mortgage loans, and home equity lines of credit consisting of loans secured by first or second mortgages on primarily owner occupied primary residences. The company also provides consumer installment loans for the purchase of cars, boats and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; and commercial equipment leasing programs for manufacturing, construction, transportation, and healthcare industries. Further, it offers merchant services; deposit products, including checking, time, savings, money market, and certificates of deposit, as well as sweep accounts; letters of credit; and trust and wealth management services, such as financial and estate planning, trustee and custodial, investment management, tax, insurance, and business planning, corporate retirement plan consulting and administration, and retail brokerage services. The company was founded in 1881 and is headquartered in Effingham, Illinois.
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