Head to Head Contrast: FinWise Bancorp (NASDAQ:FINW) versus Banc of California (NYSE:BANC)

Banc of California (NYSE:BANC) and FinWise Bancorp (NASDAQ:FINW) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Risk and Volatility

Banc of California has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, FinWise Bancorp has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

86.9% of Banc of California shares are owned by institutional investors. Comparatively, 35.4% of FinWise Bancorp shares are owned by institutional investors. 2.7% of Banc of California shares are owned by company insiders. Comparatively, 21.3% of FinWise Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Banc of California and FinWise Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banc of California	11.49%	8.00%	0.70%
FinWise Bancorp	12.13%	8.43%	1.88%

Analyst Recommendations

This is a summary of current recommendations for Banc of California and FinWise Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banc of California	0	2	8	1	2.91
FinWise Bancorp	0	1	4	0	2.80

Banc of California presently has a consensus price target of $19.25, indicating a potential upside of 12.70%. FinWise Bancorp has a consensus price target of $21.75, indicating a potential upside of 15.81%. Given FinWise Bancorp’s higher probable upside, analysts clearly believe FinWise Bancorp is more favorable than Banc of California.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banc of California	$1.07 billion	2.35	$126.89 million	$1.04	16.42
FinWise Bancorp	$96.84 million	2.62	$12.74 million	$1.06	17.72

Banc of California has higher revenue and earnings than FinWise Bancorp. Banc of California 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 Banc of California on 9 of the 15 factors compared between the two stocks.

About Banc of California

Banc of California, Inc. operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes. It also provides real estate loans to professional developers and real estate investors for the acquisition, construction, refinancing, renovation, and on-going operation of commercial real estate properties; commercial real estate mortgage, residential real estate mortgage, and real estate construction and land loans; commercial loans and leases, such as equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending services; small business administration loans; and consumer loans comprising personal, auto, and other loans, as well as home equity and revolving lines of credit. In addition, the company offers international banking, multi-state deposit, and asset and investment management services, as well as cash and treasury management services; and online, mobile, remote deposit, and telephone banking services. It serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.

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.