Bank of America Corporation (BAC) vs JPMorgan Chase & Co. (JPM)

Bank of America Corporation and JPMorgan Chase & Co. are both Banks Diversified companies. JPMorgan Chase & Co. is the larger, with a market value of $902.3B against $392.9B — 2.3× the size. Bank of America Corporation trades at the lower P/E: 12.9× against 14.7×. JPMorgan Chase & Co. grew revenue faster over the last twelve months: 8.04% against −1.02%. JPMorgan Chase & Co. has the higher net margin (21.4% vs 16.6%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; Bank of America Corporation yields more (3.01% vs 2.49%). Across the 18 metrics below, Bank of America Corporation leads on 9 and JPMorgan Chase & Co. on 9.

Valuation

Metric BAC JPM Banks Diversified median
P/E 12.86 14.67 13.67
P/S 2.10 3.10 2.72
P/B 1.47 2.61 1.69
Price to free cash flow 4.32 n/m 4.53
EV/EBITDA n/m n/m —
EV/Sales (1.37) (1.46) —
Earnings yield 7.78% 6.82% 7.33%
Free cash flow yield 23.13% (17.61%) 7.63%

Profitability

Metric BAC JPM Banks Diversified median
Gross margin 61.68% 67.00% 67.18%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.62% 21.38% 18.44%
Free cash flow margin 49.01% (54.61%) 1.96%
Return on equity 11.64% 18.43% 11.14%
Return on assets 0.93% 1.33% 0.74%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric BAC JPM Banks Diversified median
Revenue growth (TTM) (1.02%) 8.04% 4.67%
EPS growth (last fiscal year) 18.69% 1.37% —
Revenue growth, 5-year CAGR 15.36% 16.63% 14.34%
Net income growth, 5-year CAGR 12.02% 15.23% 10.77%

Health

Metric BAC JPM Banks Diversified median
Debt to equity 1.13 1.23 1.39
Current ratio 0.83 0.85 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric BAC JPM Banks Diversified median
Dividend yield 3.01% 2.49% 3.80%
Payout ratio 0.25 0.26 0.31

Size

Metric BAC JPM Banks Diversified median
Market cap 392.85b 902.32b 186.46b

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