J P Morgan Chase & Co (NYSE: JPM) and Citigroup (NYSE:C) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
Volatility & Risk
J P Morgan Chase & Co has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Citigroup has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.
Institutional and Insider Ownership
74.1% of J P Morgan Chase & Co shares are owned by institutional investors. Comparatively, 74.9% of Citigroup shares are owned by institutional investors. 0.9% of J P Morgan Chase & Co shares are owned by insiders. Comparatively, 0.1% of Citigroup shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares J P Morgan Chase & Co and Citigroup’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|J P Morgan Chase & Co||$92.88 billion||3.46||$23.79 billion||$6.76||13.52|
|Citigroup||$64.31 billion||2.83||$13.65 billion||$5.01||13.33|
J P Morgan Chase & Co has higher revenue and earnings than Citigroup. Citigroup is trading at a lower price-to-earnings ratio than J P Morgan Chase & Co, indicating that it is currently the more affordable of the two stocks.
This table compares J P Morgan Chase & Co and Citigroup’s 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 pays an annual dividend of $2.00 per share and has a dividend yield of 2.2%. Citigroup pays an annual dividend of $1.28 per share and has a dividend yield of 1.9%. J P Morgan Chase & Co pays out 29.6% of its earnings in the form of a dividend. Citigroup pays out 25.5% 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. J P Morgan Chase & Co has raised its dividend for 2 consecutive years and Citigroup has raised its dividend for 6 consecutive years.
This is a breakdown of current recommendations for J P Morgan Chase & Co and Citigroup, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|J P Morgan Chase & Co||2||12||16||0||2.47|
J P Morgan Chase & Co presently has a consensus target price of $84.15, indicating a potential downside of 7.95%. Citigroup has a consensus target price of $69.48, indicating a potential upside of 4.00%. Given Citigroup’s stronger consensus rating and higher probable upside, analysts plainly believe Citigroup is more favorable than J P Morgan Chase & Co.
J P Morgan Chase & Co beats Citigroup on 11 of the 17 factors compared between the two stocks.
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.
Citigroup Company Profile
Citigroup Inc. (Citi) is a financial services holding company. The Company’s whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services and wealth management. The Company operates through two segments: Citicorp and Citi Holdings. Citicorp is the Company’s global bank for consumers and businesses and represents its core franchises. Citicorp is focused on providing products and services to customers and leveraging the Company’s global network, including various economies. As of December 31, 2016, Citicorp was present in 97 countries and jurisdictions, and offered services in over 160 countries and jurisdictions. Global Consumer Banking (GCB) provides traditional banking services to retail customers through retail banking, including Citi-branded cards and Citi retail services.
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