Reviewing JPMorgan Chase & Co. (JPM) and Centerstate Bank (CSFL)

JPMorgan Chase & Co. (NYSE: JPM) and Centerstate Bank (NASDAQ:CSFL) are both financials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares JPMorgan Chase & Co. and Centerstate Bank’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JPMorgan Chase & Co. $113.90 billion 3.44 $24.44 billion $6.38 17.69
Centerstate Bank $253.03 million 6.31 $42.34 million $1.27 20.91

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

Analyst Recommendations

This is a summary of recent ratings and price targets for JPMorgan Chase & Co. and Centerstate Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JPMorgan Chase & Co. 1 11 12 0 2.46
Centerstate Bank 0 1 2 0 2.67

JPMorgan Chase & Co. presently has a consensus price target of $105.76, suggesting a potential downside of 6.30%. Centerstate Bank has a consensus price target of $29.33, suggesting a potential upside of 10.48%. Given Centerstate Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Centerstate Bank is more favorable than JPMorgan Chase & Co..

Risk and Volatility

JPMorgan Chase & Co. has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Centerstate Bank has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Dividends

JPMorgan Chase & Co. pays an annual dividend of $2.24 per share and has a dividend yield of 2.0%. Centerstate Bank pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. JPMorgan Chase & Co. pays out 35.1% of its earnings in the form of a dividend. Centerstate Bank pays out 18.9% 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. Centerstate Bank has raised its dividend for 7 consecutive years.

Profitability

This table compares JPMorgan Chase & Co. and Centerstate Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JPMorgan Chase & Co. 21.46% 11.63% 1.05%
Centerstate Bank 27.80% 9.81% 1.30%

Institutional and Insider Ownership

73.8% of JPMorgan Chase & Co. shares are owned by institutional investors. Comparatively, 75.8% of Centerstate Bank shares are owned by institutional investors. 0.9% of JPMorgan Chase & Co. shares are owned by company insiders. Comparatively, 3.7% of Centerstate Bank shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Centerstate Bank beats JPMorgan Chase & Co. on 10 of the 17 factors compared between the two stocks.

JPMorgan 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.

Centerstate Bank Company Profile

CenterState Bank Corporation, formerly CenterState Banks, Inc., is a financial holding company, which owns CenterState Bank of Florida, N.A. (CenterState Bank or the Bank). The Company provides a range of consumer and commercial banking services to individuals, businesses and industries. The Company’s segments include commercial and retail banking, correspondent banking and capital markets division, and corporate overhead and administration. Its commercial and retail banking segment provides traditional deposit and lending products and services to its commercial and retail customers. Its correspondent banking and capital markets segment operates as a division within its subsidiary bank, which provides hedging services, loan brokerage and consulting services. The Bank offers a range of lending services, including consumer and commercial loans, to individuals and small businesses and organizations that are located in or conduct a substantial portion of their business in its market area.

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