Community Bank System (NYSE:CBU) 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 risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Institutional & Insider Ownership

71.1% of Community Bank System shares are held by institutional investors. Comparatively, 69.9% of JPMorgan Chase & Co. shares are held by institutional investors. 2.2% of Community Bank System shares are held by insiders. Comparatively, 0.8% of JPMorgan Chase & Co. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Community Bank System pays an annual dividend of $1.52 per share and has a dividend yield of 2.4%. JPMorgan Chase & Co. pays an annual dividend of $3.20 per share and has a dividend yield of 2.8%. Community Bank System pays out 45.1% of its earnings in the form of a dividend. JPMorgan Chase & Co. pays out 35.6% 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. Community Bank System has raised its dividend for 8 consecutive years and JPMorgan Chase & Co. has raised its dividend for 8 consecutive years. JPMorgan Chase & Co. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Community Bank System and JPMorgan Chase & Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Bank System 28.74% 10.55% 1.64%
JPMorgan Chase & Co. 24.28% 14.23% 1.25%

Valuation & Earnings

This table compares Community Bank System and JPMorgan Chase & Co.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Bank System $586.79 million 5.47 $168.64 million $3.37 18.51
JPMorgan Chase & Co. $131.41 billion 2.96 $32.47 billion $9.00 12.61

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

Risk and Volatility

Community Bank System has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Community Bank System and JPMorgan Chase & Co., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Bank System 0 5 0 0 2.00
JPMorgan Chase & Co. 0 9 10 0 2.53

Community Bank System presently has a consensus target price of $59.33, indicating a potential downside of 4.88%. JPMorgan Chase & Co. has a consensus target price of $123.69, indicating a potential upside of 9.02%. Given JPMorgan Chase & Co.’s stronger consensus rating and higher probable upside, analysts clearly believe JPMorgan Chase & Co. is more favorable than Community Bank System.

Summary

JPMorgan Chase & Co. beats Community Bank System on 10 of the 16 factors compared between the two stocks.

Community Bank System Company Profile

Community Bank System, Inc. provides banking solutions. The bank offers demand deposits and interest and non-interest bearing time and savings deposits. The company's deposits include jumbo deposits and retail time deposits. It provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. It offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. It offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. It offers domestic and foreign commercial and industrial loans. The company offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. For 2017, the bank has an asset value of 10.6 million USD. The company has generated a net income of 168,403 USD in December 31, 2017. Community Bank System, Inc. was founded in 1866 and is based in DeWitt, New York.

JPMorgan Chase & Co. Company Profile

JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit card, payment processing, auto loan, and leasing services. The CIB segment provides investment banking products and services, including advising on corporate strategy and structure, and capital-raising in equity and debt markets, as well as loan origination and syndication; treasury services, such as cash management and liquidity solutions; and cash securities and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The CB segment provides financial solutions, including lending, treasury, investment banking, and asset management to corporations, municipalities, financial institutions, and nonprofit entities, as well as financing to real estate investors and owners. The AWM segment offers investment and wealth management services across various asset classes, such as equities, fixed income, alternatives, and money market funds; multi-asset investment management services; retirement products and services; and brokerage and banking services comprising trusts, estates, loans, mortgages, and deposits. The company also provides ATMs; digital covering online and mobile; and telephone banking services. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.

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