Comparing JPMorgan Chase & Co. (NYSE:JPM) & Franklin Financial Services (NASDAQ:FRAF)

Franklin Financial Services (NASDAQ:FRAF) and JPMorgan Chase & Co. (NYSE:JPM) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Earnings & Valuation

This table compares Franklin Financial Services and JPMorgan Chase & Co.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Financial Services	$133.55 million	2.14	$21.23 million	$5.49	11.57
JPMorgan Chase & Co.	$280.35 billion	3.38	$57.05 billion	$23.34	15.29

JPMorgan Chase & Co. has higher revenue and earnings than Franklin Financial Services. Franklin Financial Services is trading at a lower price-to-earnings ratio than JPMorgan Chase & Co., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

24.8% of Franklin Financial Services shares are held by institutional investors. Comparatively, 71.6% of JPMorgan Chase & Co. shares are held by institutional investors. 5.9% of Franklin Financial Services shares are held by insiders. Comparatively, 0.4% of JPMorgan Chase & Co. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Franklin Financial Services and JPMorgan Chase & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Financial Services	18.20%	14.00%	1.08%
JPMorgan Chase & Co.	21.86%	18.23%	1.33%

Dividends

Franklin Financial Services pays an annual dividend of $1.36 per share and has a dividend yield of 2.1%. JPMorgan Chase & Co. pays an annual dividend of $6.00 per share and has a dividend yield of 1.7%. Franklin Financial Services pays out 24.8% of its earnings in the form of a dividend. JPMorgan Chase & Co. pays out 25.7% 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. Franklin Financial Services has raised its dividend for 1 consecutive years and JPMorgan Chase & Co. has raised its dividend for 15 consecutive years. Franklin Financial Services is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Franklin Financial Services has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Franklin Financial Services and JPMorgan Chase & Co., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Financial Services	0	1	1	0	2.50
JPMorgan Chase & Co.	0	11	16	1	2.64

Franklin Financial Services currently has a consensus target price of $68.00, suggesting a potential upside of 7.02%. JPMorgan Chase & Co. has a consensus target price of $359.96, suggesting a potential upside of 0.89%. Given Franklin Financial Services’ higher probable upside, equities analysts plainly believe Franklin Financial Services is more favorable than JPMorgan Chase & Co..

Summary

JPMorgan Chase & Co. beats Franklin Financial Services on 14 of the 18 factors compared between the two stocks.

About Franklin Financial Services

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans; consumer loans comprising unsecured personal lines of credit and installment loans; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, and custodial services, as well as non-trust related investment services; sells mutual funds, annuities, and insurance products; and offers safe deposit, pension, and fiduciary services. Further, the company engages in non-bank investment activities, such as venture capital investments. The company was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.

About JPMorgan Chase & Co.

JPMorgan Chase & Co. is a financial holding company, which engages in the provision of financial and investment banking services. It focuses on investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. It operates through the following segments: Consumer and Community Banking (CCB), Commercial and Investment Bank (CIB), Asset and Wealth Management (AWM), and Corporate. The CCB segment originates and services mortgage loans. The CIB segment makes markets and services clients across fixed income, foreign exchange, equities, and commodities. The AWM segment provides initial capital investments in products such as mutual funds and capital invested alongside third-party investors. The Corporate segment manages its liquidity, funding, capital, structural interest rate, and foreign exchange risks. The company was founded in 1799 and is headquartered in New York, NY.