J P Morgan Chase & Co (NYSE: JPM) and Brookline Bancorp (NASDAQ:BRKL) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
This table compares J P Morgan Chase & Co and Brookline Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|J P Morgan Chase & Co||24.08%||11.68%||1.06%|
This is a breakdown of recent recommendations and price targets for J P Morgan Chase & Co and Brookline Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|J P Morgan Chase & Co||2||13||15||0||2.43|
J P Morgan Chase & Co presently has a consensus price target of $91.38, indicating a potential downside of 12.79%. Brookline Bancorp has a consensus price target of $15.83, indicating a potential downside of 1.04%. Given Brookline Bancorp’s higher possible upside, analysts plainly believe Brookline Bancorp is more favorable than J P Morgan Chase & Co.
Institutional and Insider Ownership
73.9% of J P Morgan Chase & Co shares are owned by institutional investors. Comparatively, 77.7% of Brookline Bancorp shares are owned by institutional investors. 0.9% of J P Morgan Chase & Co shares are owned by company insiders. Comparatively, 2.9% of Brookline Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares J P Morgan Chase & Co and Brookline Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|J P Morgan Chase & Co||$105.49 billion||3.45||$24.73 billion||$6.97||15.03|
|Brookline Bancorp||$262.32 million||4.68||$52.36 million||$0.78||20.51|
J P Morgan Chase & Co has higher revenue and earnings than Brookline Bancorp. J P Morgan Chase & Co is trading at a lower price-to-earnings ratio than Brookline Bancorp, indicating that it is currently the more affordable of the two stocks.
J P Morgan Chase & Co pays an annual dividend of $2.24 per share and has a dividend yield of 2.1%. Brookline Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. J P Morgan Chase & Co pays out 32.1% of its earnings in the form of a dividend. Brookline Bancorp pays out 46.2% 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. Brookline Bancorp has increased its dividend for 6 consecutive years. Brookline Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
J P Morgan Chase & Co has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Brookline Bancorp has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
J P Morgan Chase & Co beats Brookline Bancorp on 10 of the 17 factors compared between the two stocks.
About J P Morgan Chase & Co
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.
About Brookline Bancorp
Brookline Bancorp, Inc. operates as a multi-bank holding company for Brookline Bank and its subsidiaries; Bank Rhode Island (BankRI) and its subsidiaries; First Ipswich Bank (First Ipswich) and its subsidiaries, and Brookline Securities Corp. As a commercially focused financial institution with 50 full-service banking offices throughout greater Boston, the north shore of Massachusetts and Rhode Island, the Company, through Brookline Bank, BankRI and First Ipswich (individually and collectively the Banks), offered a range of commercial, business and retail banking services, including cash management products, online banking services, consumer and residential loans and investment services throughout central New England, as of December 31, 2016. The Company also provides specialty equipment financing through its subsidiaries, Eastern Funding LLC and Macrolease Corporation.
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