Signature Bank (NASDAQ:SBNY – Get Rating) and FinWise Bancorp (NASDAQ:FINW – Get Rating) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Profitability
This table compares Signature Bank and FinWise Bancorp's net margins, return on equity and return on assets.
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| Net Margins | Return on Equity | Return on Assets |
| Signature Bank | 43.86% | 15.02% | 1.03% |
| FinWise Bancorp | N/A | 23.51% | 6.86% |
Institutional & Insider Ownership
98.6% of Signature Bank shares are owned by institutional investors. Comparatively, 25.9% of FinWise Bancorp shares are owned by institutional investors. 24.4% of FinWise Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for Signature Bank and FinWise Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Signature Bank | 0 | 0 | 13 | 1 | 3.07 |
| FinWise Bancorp | 0 | 0 | 2 | 0 | 3.00 |
Signature Bank presently has a consensus price target of $275.46, suggesting a potential upside of 80.18%. FinWise Bancorp has a consensus price target of $19.00, suggesting a potential upside of 117.14%. Given FinWise Bancorp's higher probable upside, analysts clearly believe FinWise Bancorp is more favorable than Signature Bank.
Valuation & Earnings
This table compares Signature Bank and FinWise Bancorp's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Signature Bank | $2.31 billion | 4.16 | $918.44 million | $18.78 | 8.14 |
| FinWise Bancorp | $81.09 million | 1.39 | $31.58 million | N/A | N/A |
Signature Bank has higher revenue and earnings than FinWise Bancorp.
Summary
Signature Bank beats FinWise Bancorp on 8 of the 12 factors compared between the two stocks.
About Signature Bank
(Get Rating)
Signature Bank provides commercial banking products and services. It accepts various deposit products, including checking accounts, money market accounts, escrow deposit accounts, cash concentration accounts, certificates of deposit, and other cash management products. The company provides various lending products comprising commercial and industrial loans, real estate loans, and letters of credit. In addition, it offers asset management and investment products; and retirement products, such as individual retirement accounts and administrative services for retirement vehicles. Further, the company provides wealth management services to its high net worth personal clients; and purchases, sells, and assembles small business administration loans and pools. Additionally, it offers individual and group insurance products, including health, life, disability, and long-term care insurance products for business and private clients. As of December 31, 2021, the company operated 37 private client offices located in the metropolitan New York area, Connecticut, California, and North Carolina. Signature Bank was incorporated in 2000 and is headquartered in New York, New York.
About FinWise Bancorp
(Get Rating)
FinWise Bancorp operates as the bank holding company for FinWise Bank that provides various banking products and services to individual and corporate customers. It offers various deposit products, including interest and noninterest bearing demand, NOW, money market, and checking and savings accounts, as well as time deposits and certificates of deposits. The company also provides small business administration, residential and commercial real estate, consumer, and commercial non-real estate loans. In addition, it offers debit cards, remote deposit capture, online banking, mobile banking, and direct deposit services; and cash management and treasury services. The company operates one full-service banking location in Sandy, Utah; and a loan production office in Rockville Centre, New York. FinWise Bancorp was founded in 1999 and is headquartered in Murray, Utah.
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