By analyzing existing basic indicators between JP Morgan and B of A, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in B of A with a short position in JP Morgan. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. JP Morgan has an asset utilization ratio of 4.17 percent. This denotes that the company is making $0.0417 for each dollar of assets. An increasing asset utilization means that JP Morgan Chase is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as JPMorgan or Citigroup is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding JPMorgan Chase dividends
A dividend is the distribution of a portion of JPMorgan Chase earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. JPMorgan Chase dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. JPMorgan one year expected dividend income is about USD2.03 per share.
At this time, JPMorgan Chase's
Dividends Paid is very stable compared to the past year. As of the 23rd of April 2024,
Dividend Yield is likely to grow to 0.05, while
Dividend Payout Ratio is likely to drop 0.26.
Investing in dividend-paying stocks, such as JPMorgan Chase Co is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in JPMorgan Chase must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for JPMorgan Chase. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is JPMorgan Chase's Liquidity
JPMorgan Chase
financial leverage refers to using borrowed capital as a funding source to finance JPMorgan Chase Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JPMorgan Chase financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to JPMorgan Chase's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of JPMorgan Chase's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between JPMorgan Chase's total debt and its cash.
Correlation Between JPMorgan and Citigroup
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding JPMorgan Chase together with similar or unrelated positions with a negative correlation. For example, you can also add Citigroup to your portfolio. If Citigroup is not perfectly correlated to JPMorgan Chase it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When JPMorgan Chase, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both JPMorgan Chase and Citigroup in your portfolio? Please note if you are using this as a pair-trade strategy between JPMorgan Chase and Citigroup, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between JPM and C for more information.
Going after JPMorgan Financials
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at JP Morgan revenue. Based on the latest financial disclosure, JP Morgan Chase reported 98.03
B of revenue. This is much higher than that of the Financial Services sector and significantly higher than that of the
Banks—Diversified industry. The revenue for all United States stocks is significantly lower than that of the stock. As for B of A we see revenue of 75.57
B, which is much higher than that of the Banks—Diversified
| JP Morgan | 98.03 Billion |
| Sector | 0.0 |
| B of A | 75.57 Billion |
JP Morgan showing trail of lower volatility
New mean deviation is at 1.67. JP Morgan Chase has relatively low volatility with skewness of 2.53 and kurtosis of 11.56. However, we advise all investors to independently investigate JP Morgan Chase to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.
Our Conclusion on JP Morgan
While some other firms within the banks—diversified industry are still a little expensive, even after the recent corrections, JP Morgan may offer a potential longer-term growth to stakeholders. While some in two weeks oriented stakeholders may not share our view, we believe it may not be a good time to buy new shares of JP Morgan.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of JPMorgan Chase Co. Please refer to our
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