JP Morgan Story

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JPM -- USA Stock  

USD 147.02  4.16  2.75%

It looks like B of A will be up for a correction way faster as its share price whent up 1.58% today to JP Morgan's 0.5843%. As many rational traders are trying to avoid financial services space, it makes sense to summarize JP Morgan Chase a little further and understand how it stands against B of A and other similar entities. We are going to summarize some of the competitive aspects of both JP Morgan and B of A.
Published over a month ago
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What should I acquire B of A (NYSE:BAC) or JP Morgan (NYSE:JPM)?
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 companies, such as JP Morgan or Citigroup is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING JP Morgan dividends

A dividend is the distribution of a portion of JP Morgan 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. JP Morgan 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. JP Morgan one year expected dividend income is about $1.73 per share.
Dividends per Basic Common Share is expected to hike to 4.09 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (12 B).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-11.1 B-12 B
Dividend Yield 0.0276  0.0271 
Dividends per Basic Common Share 3.79  4.09 
Investing in dividend-paying stocks, such as JP Morgan Chase is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in JP Morgan 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 JP Morgan. 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 JP Morgan's Liquidity

JP Morgan financial leverage refers to using borrowed capital as a funding source to finance JP Morgan Chase ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JP Morgan 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. Please check the breakdown between JP Morgan's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for JP Morgan, but it might be worth checking our own buy vs. sell analysis

Correlation Between JP Morgan 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 JP Morgan 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 JP Morgan 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 JP Morgan for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between JPM and C for more information.

A Deeper look at JP Morgan

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 Morgan98.03 Billion
Sector0.0
B of A75.57 Billion
98 B
JP Morgan
Sector
75.6 B
B of A

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.

About Contributor

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 JP Morgan Chase. Please refer to our Terms of Use for any information regarding our disclosure principles.

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