SmartFinancial (NASDAQ:SMBK – Get Free Report) and JPMorgan Chase & Co. (NYSE:JPM – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
58.8% of SmartFinancial shares are held by institutional investors. Comparatively, 71.6% of JPMorgan Chase & Co. shares are held by institutional investors. 6.9% of SmartFinancial shares are held by company insiders. Comparatively, 0.4% of JPMorgan Chase & Co. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares SmartFinancial and JPMorgan Chase & Co.”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SmartFinancial | $210.19 million | 4.24 | $36.14 million | $3.39 | 15.38 |
| JPMorgan Chase & Co. | $280.35 billion | 3.34 | $57.05 billion | $23.34 | 15.09 |
JPMorgan Chase & Co. has higher revenue and earnings than SmartFinancial. JPMorgan Chase & Co. is trading at a lower price-to-earnings ratio than SmartFinancial, indicating that it is currently the more affordable of the two stocks.
Dividends
SmartFinancial pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. JPMorgan Chase & Co. pays an annual dividend of $6.00 per share and has a dividend yield of 1.7%. SmartFinancial pays out 10.6% of its earnings in the form of a dividend. JPMorgan Chase & Co. pays out 25.7% 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. SmartFinancial has raised its dividend for 3 consecutive years and JPMorgan Chase & Co. has raised its dividend for 15 consecutive years. JPMorgan Chase & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
SmartFinancial has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for SmartFinancial and JPMorgan Chase & Co., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SmartFinancial | 0 | 4 | 2 | 1 | 2.57 |
| JPMorgan Chase & Co. | 0 | 12 | 16 | 0 | 2.57 |
SmartFinancial presently has a consensus target price of $50.42, indicating a potential downside of 3.30%. JPMorgan Chase & Co. has a consensus target price of $359.96, indicating a potential upside of 2.20%. Given JPMorgan Chase & Co.’s higher probable upside, analysts plainly believe JPMorgan Chase & Co. is more favorable than SmartFinancial.
Profitability
This table compares SmartFinancial and JPMorgan Chase & Co.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SmartFinancial | 12.67% | 7.33% | 0.71% |
| JPMorgan Chase & Co. | 21.86% | 18.23% | 1.33% |
Summary
JPMorgan Chase & Co. beats SmartFinancial on 12 of the 17 factors compared between the two stocks.
About SmartFinancial
SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, and Florida. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, Leases, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans and leases; commercial business and mortgage loans; and direct consumer installment, educational, agriculture, and other revolving credit loans; equipment financing, heavy equipment, semis, and trailers loans and leases to small and mid-size companies; letters of credit; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and internet and mobile banking services. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. is a financial holding company, which engages in the provision of financial and investment banking services. It focuses on investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. It operates through the following segments: Consumer and Community Banking (CCB), Commercial and Investment Bank (CIB), Asset and Wealth Management (AWM), and Corporate. The CCB segment originates and services mortgage loans. The CIB segment makes markets and services clients across fixed income, foreign exchange, equities, and commodities. The AWM segment provides initial capital investments in products such as mutual funds and capital invested alongside third-party investors. The Corporate segment manages its liquidity, funding, capital, structural interest rate, and foreign exchange risks. The company was founded in 1799 and is headquartered in New York, NY.
Receive News & Ratings for SmartFinancial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SmartFinancial and related companies with MarketBeat.com's FREE daily email newsletter.
