Comparing RBB Bancorp (NASDAQ:RBB) and JPMorgan Chase & Co. (NYSE:JPM)

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

Dividends

JPMorgan Chase & Co. pays an annual dividend of $6.60 per share and has a dividend yield of 1.9%. RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.5%. JPMorgan Chase & Co. pays out 27.7% of its earnings in the form of a dividend. RBB Bancorp pays out 24.8% 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. JPMorgan Chase & Co. has increased its dividend for 15 consecutive years. RBB Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

JPMorgan Chase & Co. has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, RBB Bancorp has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for JPMorgan Chase & Co. and RBB Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JPMorgan Chase & Co.	0	13	14	1	2.57
RBB Bancorp	0	3	2	0	2.40

JPMorgan Chase & Co. presently has a consensus target price of $368.10, indicating a potential upside of 7.12%. RBB Bancorp has a consensus target price of $29.33, indicating a potential upside of 12.65%. Given RBB Bancorp’s higher possible upside, analysts plainly believe RBB Bancorp is more favorable than JPMorgan Chase & Co..

Valuation & Earnings

This table compares JPMorgan Chase & Co. and RBB Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JPMorgan Chase & Co.	$198.55 billion	4.60	$57.05 billion	$23.84	14.41
RBB Bancorp	$238.00 million	1.85	$31.95 million	$2.58	10.09

JPMorgan Chase & Co. has higher revenue and earnings than RBB Bancorp. RBB Bancorp 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.

Profitability

This table compares JPMorgan Chase & Co. and RBB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JPMorgan Chase & Co.	21.85%	18.48%	1.32%
RBB Bancorp	18.02%	8.35%	1.05%

Institutional & Insider Ownership

71.6% of JPMorgan Chase & Co. shares are held by institutional investors. Comparatively, 40.1% of RBB Bancorp shares are held by institutional investors. 0.4% of JPMorgan Chase & Co. shares are held by insiders. Comparatively, 6.8% of RBB Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

JPMorgan Chase & Co. beats RBB Bancorp on 13 of the 18 factors compared between the two stocks.

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.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.