JPMorgan Chase & Co. (JPM) vs Wells Fargo & Company (WFC)

JPMorgan Chase & Co. and Wells Fargo & Company are both Banks Diversified companies. JPMorgan Chase & Co. is the larger, with a market value of $902.3B against $248.6B — 3.6× the size. Wells Fargo & Company trades at the lower P/E: 11.9× against 14.7×. JPMorgan Chase & Co. grew revenue faster over the last twelve months: 8.04% against 5.33%. JPMorgan Chase & Co. has the higher net margin (21.4% vs 16.8%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; Wells Fargo & Company yields more (3.05% vs 2.49%). Across the 18 metrics below, Wells Fargo & Company leads on 13 and JPMorgan Chase & Co. on 5.

Valuation

Metric JPM WFC Banks Diversified median
P/E 14.67 11.92 13.67
P/S 3.10 1.96 2.72
P/B 2.61 1.51 1.69
Price to free cash flow n/m 13.27 4.53
EV/EBITDA n/m n/m —
EV/Sales (1.46) (1.69) —
Earnings yield 6.82% 8.39% 7.33%
Free cash flow yield (17.61%) 7.53% 7.63%

Profitability

Metric JPM WFC Banks Diversified median
Gross margin 67.00% 67.36% 67.18%
Operating margin 0.00% 0.00% 0.00%
Net margin 21.38% 16.78% 18.44%
Free cash flow margin (54.61%) 14.88% 1.96%
Return on equity 18.43% 12.97% 11.14%
Return on assets 1.33% 1.01% 0.74%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric JPM WFC Banks Diversified median
Revenue growth (TTM) 8.04% 5.33% 4.67%
EPS growth (last fiscal year) 1.37% 16.57% —
Revenue growth, 5-year CAGR 16.63% 8.48% 14.34%
Net income growth, 5-year CAGR 15.23% 62.58% 10.77%

Health

Metric JPM WFC Banks Diversified median
Debt to equity 1.23 1.00 1.39
Current ratio 0.85 0.90 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric JPM WFC Banks Diversified median
Dividend yield 2.49% 3.05% 3.80%
Payout ratio 0.26 0.30 0.31

Size

Metric JPM WFC Banks Diversified median
Market cap 902.32b 248.57b 186.46b

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