BAC vs. JPM, WFC, C, USB, PNC, COF, TFC, HBAN, SHG, and RF
Should you be buying Bank of America stock or one of its competitors? The main competitors of Bank of America include JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), Citigroup (C), U.S. Bancorp (USB), The PNC Financial Services Group (PNC), Capital One Financial (COF), Truist Financial (TFC), Huntington Bancshares (HBAN), Shinhan Financial Group (SHG), and Regions Financial (RF). These companies are all part of the "national commercial banks" industry.
Bank of America (NYSE:BAC) and JPMorgan Chase & Co. (NYSE:JPM) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their media sentiment, institutional ownership, profitability, analyst recommendations, community ranking, risk, dividends, earnings and valuation.
Bank of America currently has a consensus target price of $38.70, indicating a potential downside of 3.23%. JPMorgan Chase & Co. has a consensus target price of $194.10, indicating a potential downside of 4.21%. Given Bank of America's higher probable upside, research analysts clearly believe Bank of America is more favorable than JPMorgan Chase & Co..
Bank of America received 73 more outperform votes than JPMorgan Chase & Co. when rated by MarketBeat users. However, 71.33% of users gave JPMorgan Chase & Co. an outperform vote while only 65.74% of users gave Bank of America an outperform vote.
JPMorgan Chase & Co. has a net margin of 20.05% compared to Bank of America's net margin of 13.94%. JPMorgan Chase & Co.'s return on equity of 17.79% beat Bank of America's return on equity.
In the previous week, JPMorgan Chase & Co. had 11 more articles in the media than Bank of America. MarketBeat recorded 37 mentions for JPMorgan Chase & Co. and 26 mentions for Bank of America. JPMorgan Chase & Co.'s average media sentiment score of 0.59 beat Bank of America's score of 0.40 indicating that JPMorgan Chase & Co. is being referred to more favorably in the news media.
70.7% of Bank of America shares are held by institutional investors. Comparatively, 71.6% of JPMorgan Chase & Co. shares are held by institutional investors. 0.3% of Bank of America shares are held by company insiders. Comparatively, 0.8% 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 stock is poised for long-term growth.
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 2.3%. 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.
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 has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Summary
JPMorgan Chase & Co. beats Bank of America on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BAC 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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