JPM vs. BAC, WFC, BRK.B, BRK.A, AXP, HSBC, MS, GS, RY, and C
Should you be buying JPMorgan Chase & Co. stock or one of its competitors? The main competitors of JPMorgan Chase & Co. include Bank of America (BAC), Wells Fargo & Company (WFC), Berkshire Hathaway (BRK.B), Berkshire Hathaway (BRK.A), American Express (AXP), HSBC (HSBC), Morgan Stanley (MS), The Goldman Sachs Group (GS), Royal Bank of Canada (RY), and Citigroup (C). These companies are all part of the "finance" sector.
Bank of America (NYSE:BAC) and JPMorgan Chase & Co. (NYSE:JPM) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, media sentiment, institutional ownership, risk, dividends, valuation, earnings and community ranking.
Bank of America pays an annual dividend of $0.96 per share and has a dividend yield of 2.4%. JPMorgan Chase & Co. pays an annual dividend of $4.60 per share and has a dividend yield of 2.2%. Bank of America pays out 33.2% of its earnings in the form of a dividend. JPMorgan Chase & Co. pays out 27.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bank of America has raised its dividend for 3 consecutive years and JPMorgan Chase & Co. has raised its dividend for 2 consecutive years. Bank of America is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Bank of America has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
JPMorgan Chase & Co. has higher revenue and earnings than Bank of America. JPMorgan Chase & Co. is trading at a lower price-to-earnings ratio than Bank of America, indicating that it is currently the more affordable of the two stocks.
Bank of America received 79 more outperform votes than JPMorgan Chase & Co. when rated by MarketBeat users. However, 71.40% of users gave JPMorgan Chase & Co. an outperform vote while only 65.81% of users gave Bank of America an outperform vote.
In the previous week, JPMorgan Chase & Co. had 9 more articles in the media than Bank of America. MarketBeat recorded 48 mentions for JPMorgan Chase & Co. and 39 mentions for Bank of America. JPMorgan Chase & Co.'s average media sentiment score of 0.67 beat Bank of America's score of 0.56 indicating that Bank of America is being referred to more favorably in the media.
Bank of America presently has a consensus target price of $38.70, suggesting a potential downside of 1.50%. JPMorgan Chase & Co. has a consensus target price of $192.05, suggesting a potential downside of 6.22%. Given JPMorgan Chase & Co.'s higher probable upside, equities research analysts plainly believe Bank of America is more favorable than JPMorgan Chase & Co..
JPMorgan Chase & Co. has a net margin of 20.05% compared to JPMorgan Chase & Co.'s net margin of 13.94%. Bank of America's return on equity of 17.79% beat JPMorgan Chase & Co.'s return on equity.
70.7% of Bank of America shares are owned by institutional investors. Comparatively, 71.6% of JPMorgan Chase & Co. shares are owned by institutional investors. 0.3% of Bank of America shares are owned by insiders. Comparatively, 0.8% of JPMorgan Chase & Co. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
JPMorgan Chase & Co. beats Bank of America on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding JPM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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