Analyzing Colony Bankcorp (NASDAQ:CBAN) & FinWise Bancorp (NASDAQ:FINW)

FinWise Bancorp (NASDAQ:FINW) and Colony Bankcorp (NASDAQ:CBAN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for FinWise Bancorp and Colony Bankcorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FinWise Bancorp	0	0	1	0	3.00
Colony Bankcorp	0	0	0	0	N/A

FinWise Bancorp presently has a consensus price target of $17.00, indicating a potential upside of 39.92%. Given FinWise Bancorp’s higher possible upside, equities research analysts plainly believe FinWise Bancorp is more favorable than Colony Bankcorp.

Risk & Volatility

FinWise Bancorp has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Colony Bankcorp has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

35.4% of FinWise Bancorp shares are owned by institutional investors. Comparatively, 50.4% of Colony Bankcorp shares are owned by institutional investors. 20.8% of FinWise Bancorp shares are owned by company insiders. Comparatively, 6.6% of Colony Bankcorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares FinWise Bancorp and Colony Bankcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FinWise Bancorp	16.64%	9.91%	2.65%
Colony Bankcorp	13.03%	9.22%	0.76%

Valuation and Earnings

This table compares FinWise Bancorp and Colony Bankcorp’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FinWise Bancorp	$85.61 million	1.82	$17.46 million	$1.29	9.42
Colony Bankcorp	$160.55 million	1.67	$21.75 million	$1.25	12.21

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

Summary

FinWise Bancorp beats Colony Bankcorp on 9 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 Colony Bankcorp

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers. The company offers deposit products, including demand, savings, and time deposits. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.