Financial Analysis: J P Morgan Chase & Co (JPM) vs. Its Peers

J P Morgan Chase & Co (NYSE: JPM) is one of 327 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare J P Morgan Chase & Co to related companies based on the strength of its earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Valuation & Earnings

This table compares J P Morgan Chase & Co and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
J P Morgan Chase & Co $92.88 billion N/A 14.34
J P Morgan Chase & Co Competitors N/A N/A 18.92

J P Morgan Chase & Co is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

J P Morgan Chase & Co has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, J P Morgan Chase & Co’s competitors have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for J P Morgan Chase & Co and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
J P Morgan Chase & Co 2 13 15 0 2.43
J P Morgan Chase & Co Competitors 1972 7835 8051 304 2.37

J P Morgan Chase & Co presently has a consensus price target of $87.81, suggesting a potential downside of 9.40%. As a group, “Banks” companies have a potential downside of 7.00%. Given J P Morgan Chase & Co’s competitors higher probable upside, analysts plainly believe J P Morgan Chase & Co has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

77.9% of J P Morgan Chase & Co shares are owned by institutional investors. Comparatively, 52.5% of shares of all “Banks” companies are owned by institutional investors. 0.9% of J P Morgan Chase & Co shares are owned by insiders. Comparatively, 10.5% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

J P Morgan Chase & Co pays an annual dividend of $2.24 per share and has a dividend yield of 2.3%. J P Morgan Chase & Co pays out 33.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 37.1% of their earnings in the form of a dividend. J P Morgan Chase & Co has increased its dividend for 6 consecutive years. J P Morgan Chase & Co is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares J P Morgan Chase & Co and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
J P Morgan Chase & Co 24.13% 11.53% 1.05%
J P Morgan Chase & Co Competitors 18.86% 8.82% 0.93%

Summary

J P Morgan Chase & Co beats its competitors on 10 of the 14 factors compared.

J P Morgan Chase & Co Company Profile

JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services. It operates in four segments, as well as a Corporate segment. Its segments are Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset Management. The Consumer & Community Banking segment offers services to consumers and businesses through bank branches, automatic teller machines (ATMs), online, mobile and telephone banking. The Corporate & Investment Bank segment, comprising Banking and Markets & Investor Services, offers investment banking, market-making, prime brokerage, and treasury and securities products and services to corporations, investors, financial institutions, and government and municipal entities. The Commercial Banking segment provides financial solutions, including lending, treasury services, investment banking and asset management. The Asset Management segment comprises investment and wealth management.

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