BAC vs. JPM: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at BAC and JPM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
JPM’s market capitalization of 764.25 billion USD is significantly greater than BAC’s 342.70 billion USD, highlighting its more substantial market valuation.
With betas of 1.31 for BAC and 1.08 for JPM, both stocks show similar sensitivity to overall market movements.
| Symbol | BAC | JPM |
|---|---|---|
| Company Name | Bank of America Corporation | JPMorgan Chase & Co. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Banks - Diversified | Banks - Diversified |
| CEO | Mr. Brian Thomas Moynihan | Mr. James Dimon |
| Price | 45.5 USD | 275 USD |
| Market Cap | 342.70 billion USD | 764.25 billion USD |
| Beta | 1.31 | 1.08 |
| Exchange | NYSE | NYSE |
| IPO Date | February 21, 1973 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of BAC and JPM over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
BAC
9.43%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.56%
- Median
- 11.72%
- Q1
- 8.87%
- Min
- 5.86%
BAC’s Return on Equity of 9.43% is on par with the norm for the Banks - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.
JPM
17.27%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.56%
- Median
- 11.72%
- Q1
- 8.87%
- Min
- 5.86%
In the upper quartile for the Banks - Diversified industry, JPM’s Return on Equity of 17.27% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
BAC
2.22%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 2.90%
- Median
- 1.77%
- Q1
- 0.88%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.
JPM
3.56%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 2.90%
- Median
- 1.77%
- Q1
- 0.88%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.
Net Profit Margin
BAC
14.56%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.30%
- Median
- 19.27%
- Q1
- 14.68%
- Min
- 7.95%
Falling into the lower quartile for the Banks - Diversified industry, BAC’s Net Profit Margin of 14.56% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
JPM
21.83%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.30%
- Median
- 19.27%
- Q1
- 14.68%
- Min
- 7.95%
JPM’s Net Profit Margin of 21.83% is aligned with the median group of its peers in the Banks - Diversified industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
BAC
15.73%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.47%
- Median
- 27.15%
- Q1
- 14.44%
- Min
- 8.60%
BAC’s Operating Profit Margin of 15.73% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
JPM
27.87%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.47%
- Median
- 27.15%
- Q1
- 14.44%
- Min
- 8.60%
JPM’s Operating Profit Margin of 27.87% is around the midpoint for the Banks - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | BAC | JPM |
|---|---|---|
| Return on Equity (TTM) | 9.43% | 17.27% |
| Return on Assets (TTM) | 0.83% | 1.37% |
| Return on Invested Capital (TTM) | 2.22% | 3.56% |
| Net Profit Margin (TTM) | 14.56% | 21.83% |
| Operating Profit Margin (TTM) | 15.73% | 27.87% |
| Gross Profit Margin (TTM) | 50.93% | 58.78% |
Financial Strength
Current Ratio
BAC
0.50
Banks - Diversified Industry
- Max
- 0.99
- Q3
- 0.59
- Median
- 0.44
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
JPM
0.28
Banks - Diversified Industry
- Max
- 0.99
- Q3
- 0.59
- Median
- 0.44
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio
BAC
2.44
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.69
- Median
- 3.14
- Q1
- 1.79
- Min
- 0.09
BAC’s Debt-to-Equity Ratio of 2.44 is typical for the Banks - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
JPM
2.86
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.69
- Median
- 3.14
- Q1
- 1.79
- Min
- 0.09
JPM’s Debt-to-Equity Ratio of 2.86 is typical for the Banks - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
BAC
0.34
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.77
- Median
- 0.42
- Q1
- 0.29
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
JPM
0.76
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.77
- Median
- 0.42
- Q1
- 0.29
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
Financial Strength at a Glance
| Symbol | BAC | JPM |
|---|---|---|
| Current Ratio (TTM) | 0.50 | 0.28 |
| Quick Ratio (TTM) | 0.50 | 0.28 |
| Debt-to-Equity Ratio (TTM) | 2.44 | 2.86 |
| Debt-to-Asset Ratio (TTM) | 0.22 | 0.23 |
| Net Debt-to-EBITDA Ratio (TTM) | 13.64 | 6.88 |
| Interest Coverage Ratio (TTM) | 0.34 | 0.76 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for BAC and JPM. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
BAC
2.29%
Banks - Diversified Industry
- Max
- 6.37%
- Q3
- 4.24%
- Median
- 3.34%
- Q1
- 2.42%
- Min
- 0.00%
BAC’s Dividend Yield of 2.29% is in the lower quartile for the Banks - Diversified industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
JPM
1.84%
Banks - Diversified Industry
- Max
- 6.37%
- Q3
- 4.24%
- Median
- 3.34%
- Q1
- 2.42%
- Min
- 0.00%
JPM’s Dividend Yield of 1.84% is in the lower quartile for the Banks - Diversified industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio
BAC
34.24%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
BAC’s Dividend Payout Ratio of 34.24% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
JPM
25.32%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
JPM’s Dividend Payout Ratio of 25.32% is within the typical range for the Banks - Diversified industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | BAC | JPM |
|---|---|---|
| Dividend Yield (TTM) | 2.29% | 1.84% |
| Dividend Payout Ratio (TTM) | 34.24% | 25.32% |
Valuation
Price-to-Earnings Ratio
BAC
12.54
Banks - Diversified Industry
- Max
- 13.90
- Q3
- 12.93
- Median
- 11.77
- Q1
- 8.76
- Min
- 7.37
BAC’s P/E Ratio of 12.54 is within the middle range for the Banks - Diversified industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
JPM
12.99
Banks - Diversified Industry
- Max
- 13.90
- Q3
- 12.93
- Median
- 11.77
- Q1
- 8.76
- Min
- 7.37
A P/E Ratio of 12.99 places JPM in the upper quartile for the Banks - Diversified industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
BAC
0.84
Banks - Diversified Industry
- Max
- 1.90
- Q3
- 1.37
- Median
- 1.10
- Q1
- 0.73
- Min
- 0.42
BAC’s Forward PEG Ratio of 0.84 is within the middle range of its peers in the Banks - Diversified industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
JPM
1.89
Banks - Diversified Industry
- Max
- 1.90
- Q3
- 1.37
- Median
- 1.10
- Q1
- 0.73
- Min
- 0.42
A Forward PEG Ratio of 1.89 places JPM in the upper quartile for the Banks - Diversified industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
BAC
1.79
Banks - Diversified Industry
- Max
- 4.08
- Q3
- 2.78
- Median
- 2.22
- Q1
- 1.73
- Min
- 0.23
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.
JPM
2.80
Banks - Diversified Industry
- Max
- 4.08
- Q3
- 2.78
- Median
- 2.22
- Q1
- 1.73
- Min
- 0.23
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.
Price-to-Book Ratio
BAC
1.18
Banks - Diversified Industry
- Max
- 1.86
- Q3
- 1.44
- Median
- 1.17
- Q1
- 1.06
- Min
- 0.63
BAC’s P/B Ratio of 1.18 is within the conventional range for the Banks - Diversified industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
JPM
2.21
Banks - Diversified Industry
- Max
- 1.86
- Q3
- 1.44
- Median
- 1.17
- Q1
- 1.06
- Min
- 0.63
At 2.21, JPM’s P/B Ratio is at an extreme premium to the Banks - Diversified industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | BAC | JPM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 12.54 | 12.99 |
| Forward PEG Ratio (TTM) | 0.84 | 1.89 |
| Price-to-Sales Ratio (P/S, TTM) | 1.79 | 2.80 |
| Price-to-Book Ratio (P/B, TTM) | 1.18 | 2.21 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 75.32 | -5.47 |
| EV-to-EBITDA (TTM) | 24.24 | 15.96 |
| EV-to-Sales (TTM) | 4.09 | 4.91 |