Head-To-Head Analysis: FinWise Bancorp (NASDAQ:FINW) vs. OP Bancorp (NASDAQ:OPBK)

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

Profitability

This table compares FinWise Bancorp and OP 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%
OP Bancorp	13.68%	10.64%	0.91%

Analyst Recommendations

This is a breakdown of recent ratings for FinWise Bancorp and OP Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	0	0	3	0	3.00
OP Bancorp	0	1	0	0	2.00

FinWise Bancorp currently has a consensus target price of $21.67, indicating a potential upside of 12.55%. OP Bancorp has a consensus target price of $18.00, indicating a potential upside of 32.35%. Given OP Bancorp’s higher probable upside, analysts plainly believe OP Bancorp is more favorable than FinWise Bancorp.

Earnings and Valuation

This table compares FinWise Bancorp and OP Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$96.84 million	2.63	$12.74 million	$0.94	20.48
OP Bancorp	$154.05 million	1.31	$21.07 million	$1.39	9.78

OP Bancorp has higher revenue and earnings than FinWise Bancorp. OP 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.

Insider and Institutional Ownership

35.4% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 53.6% of OP Bancorp shares are owned by institutional investors. 19.2% of FinWise Bancorp shares are owned by insiders. Comparatively, 21.3% of OP Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

FinWise Bancorp has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, OP Bancorp has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Summary

OP Bancorp beats FinWise Bancorp on 8 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 OP Bancorp

OP Bancorp operates as the bank holding company for Open Bank that provides banking products and services in California. It offers demand, checking, savings, money market, and time deposit accounts, as well as certificates of deposit. The company also provides commercial real estate, small business administration, commercial and industrial business, single-family residential, term, consumer, and home mortgage loans; trade financing products; and letters of credit, and SWIFT and export advice. In addition, it offers debit and credit card, online transfer and bill payment, electronic delivery of customer statements, and mobile banking solutions for iPhone and Android phones, including remote check deposit with mobile bill pay; direct deposits, cashier's checks, person to person payments, wire transfers, and automated clearing house (ACH) services; and cash management services, including balance reporting, transfers between accounts, wire transfer initiation, ACH origination, and stop payment services, as well as remote deposit capture, positive pay, zero balance accounts, and sweep accounts. The company operates full branch offices in Downtown Los Angeles, Los Angeles Fashion District, Los Angeles Koreatown, Gardena, Buena Park, and Santa Clara in California; and Carrollton, Texas; and operates loan production offices in Pleasanton, California; Atlanta, Georgia; Aurora, Colorado; and Lynnwood in Washington. The company was founded in 2005 and is headquartered in Los Angeles, California.