Head to Head Comparison: JPMorgan Chase & Co. (NYSE:JPM) versus Arrow Financial (NASDAQ:AROW)

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

Dividends

JPMorgan Chase & Co. pays an annual dividend of $4.00 per share and has a dividend yield of 3.5%. Arrow Financial pays an annual dividend of $1.05 per share and has a dividend yield of 3.3%. JPMorgan Chase & Co. pays out 32.1% of its earnings in the form of a dividend. Arrow Financial pays out 36.4% 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 increased its dividend for 10 consecutive years and Arrow Financial has increased its dividend for 21 consecutive years. JPMorgan Chase & Co. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

68.6% of JPMorgan Chase & Co. shares are owned by institutional investors. Comparatively, 44.9% of Arrow Financial shares are owned by institutional investors. 0.8% of JPMorgan Chase & Co. shares are owned by company insiders. Comparatively, 4.2% of Arrow Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

JPMorgan Chase & Co. has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Arrow Financial has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
JPMorgan Chase & Co. 30.41% 15.29% 1.02%
Arrow Financial 32.14% 13.24% 1.18%

Earnings & Valuation

This table compares JPMorgan Chase & Co. and Arrow Financial’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. $127.20 billion 2.67 $48.33 billion $12.46 9.30
Arrow Financial $147.92 million 3.54 $49.86 million $2.88 11.01

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

Analyst Ratings

This is a summary of current ratings for JPMorgan Chase & Co. and Arrow Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JPMorgan Chase & Co. 1 7 10 0 2.50
Arrow Financial 0 0 0 0 N/A

JPMorgan Chase & Co. currently has a consensus price target of $145.95, indicating a potential upside of 26.00%. Given JPMorgan Chase & Co.’s higher probable upside, equities research analysts plainly believe JPMorgan Chase & Co. is more favorable than Arrow Financial.

Summary

JPMorgan Chase & Co. beats Arrow Financial on 10 of the 16 factors compared between the two stocks.

About JPMorgan Chase & Co.

(Get Rating)

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 s deposit, investment and lending products, payments, 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, auto loan, and leasing services. The CIB segment provides investment banking products and services, including corporate strategy and structure advisory, and equity and debt markets capital-raising services, as well as loan origination and syndication; payments and cross-border financing; and cash 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, payments, investment banking, and asset management to small business, large and midsized companies, local governments, and nonprofit clients; and commercial real estate banking services to investors, developers, and owners of multifamily, office, retail, industrial, and affordable housing properties. The AWM segment offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; and retirement products and services, brokerage, custody, trusts and estates, loans, mortgages, deposits, and investment management products. The company also provides ATM, online and mobile, and telephone banking services. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.

About Arrow Financial

(Get Rating)

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company's deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and improvements to commercial properties, as well as commercial construction and land development loans to finance projects. The company's lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, fixed home equity loans, and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses. In addition, it maintains an indirect lending program; and sells residential real estate loan originations into the secondary market. Further, the company provides retirement planning, trust, and estate administration services for individuals; and pension, profit-sharing, and employee benefit plan administration services for corporations. Additionally, it offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. The company operates in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties, as well as surrounding areas. It owns 26 branch banking offices; and leases 12 branch banking offices, as well as two residential loan origination offices. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.

Receive News & Ratings for JPMorgan Chase & Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for JPMorgan Chase & Co. and related companies with MarketBeat.com's FREE daily email newsletter.