Critical Comparison: JPMorgan Chase & Co. (NYSE:JPM) & National Bank (NYSE:NBHC)

JPMorgan Chase & Co. (NYSE:JPM) and National Bank (NYSE:NBHC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Dividends

JPMorgan Chase & Co. pays an annual dividend of $3.60 per share and has a dividend yield of 2.8%. National Bank pays an annual dividend of $0.76 per share and has a dividend yield of 2.1%. JPMorgan Chase & Co. pays out 40.0% of its earnings in the form of a dividend. National Bank pays out 35.2% 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.

Earnings & Valuation

This table compares JPMorgan Chase & Co. and National Bank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JPMorgan Chase & Co. $131.41 billion 3.08 $32.47 billion $9.00 14.35
National Bank $292.17 million 3.78 $61.45 million $2.16 16.40

JPMorgan Chase & Co. has higher revenue and earnings than National Bank. JPMorgan Chase & Co. is trading at a lower price-to-earnings ratio than National Bank, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

73.2% of JPMorgan Chase & Co. shares are owned by institutional investors. Comparatively, 94.0% of National Bank shares are owned by institutional investors. 0.8% of JPMorgan Chase & Co. shares are owned by insiders. Comparatively, 5.5% of National Bank shares are owned by 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 JPMorgan Chase & Co. and National Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JPMorgan Chase & Co. 24.70% 14.63% 1.26%
National Bank 24.51% 10.78% 1.34%

Volatility & Risk

JPMorgan Chase & Co. has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, National Bank has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for JPMorgan Chase & Co. and National Bank, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JPMorgan Chase & Co. 1 11 6 0 2.28
National Bank 0 2 0 0 2.00

JPMorgan Chase & Co. presently has a consensus target price of $122.77, indicating a potential downside of 4.95%. National Bank has a consensus target price of $35.00, indicating a potential downside of 1.19%. Given National Bank’s higher probable upside, analysts plainly believe National Bank is more favorable than JPMorgan Chase & Co..

Summary

JPMorgan Chase & Co. beats National Bank on 9 of the 16 factors compared between the two stocks.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit card, payment processing, auto loan, and leasing services. The CIB segment provides investment banking products and services, including advising on corporate strategy and structure, and capital-raising in equity and debt markets, as well as loan origination and syndication; treasury services, such as cash management and liquidity solutions; and cash securities and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The CB segment provides financial solutions, including lending, treasury, investment banking, and asset management to corporations, municipalities, financial institutions, and nonprofit entities, as well as financing to real estate investors and owners. The AWM segment offers investment and wealth management services across various asset classes, such as equities, fixed income, alternatives, and money market funds; multi-asset investment management services; retirement products and services; and brokerage and banking services comprising trusts, estates, loans, mortgages, and deposits. The company also provides ATMs; digital covering online and mobile; and telephone banking services. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.

About National Bank

National Bank Holdings Corporation operates as the bank holding company for NBH Bank, N.A. that provides various banking products and financial services to commercial, business, and consumer clients in the United States. The company offers deposit products, including checking accounts, savings accounts, money market accounts, and other deposit accounts, including fixed-rate and fixed maturity time deposits. It also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases. The company also offers non-owner occupied commercial real estate loans consisting of loans on multi-family construction properties; commercial properties, such as office buildings, retail centers, or free-standing commercial properties; and multi-family and investor properties, as well as raw land development loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. As of December 31, 2017, the company operated through a network of 85 banking centers located in Colorado, the greater Kansas City area, New Mexico, and Texas. It also operates 106 ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. National Bank Holdings Corporation was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.

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