Analyzing JPMorgan Chase & Co. (NYSE:JPM) and Interactive Brokers Group (NASDAQ:IBKR)

JPMorgan Chase & Co. (NYSE:JPM) and Interactive Brokers Group (NASDAQ:IBKR) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares JPMorgan Chase & Co. and Interactive Brokers Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JPMorgan Chase & Co.	$278.91 billion	3.09	$58.47 billion	$19.49	16.08
Interactive Brokers Group	$5.19 billion	21.09	$755.00 million	$1.94	33.23

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for JPMorgan Chase & Co. and Interactive Brokers Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JPMorgan Chase & Co.	3	7	13	0	2.43
Interactive Brokers Group	0	1	7	0	2.88

JPMorgan Chase & Co. presently has a consensus target price of $297.17, suggesting a potential downside of 5.19%. Interactive Brokers Group has a consensus target price of $59.38, suggesting a potential downside of 7.89%. Given JPMorgan Chase & Co.’s higher probable upside, analysts plainly believe JPMorgan Chase & Co. is more favorable than Interactive Brokers Group.

Dividends

JPMorgan Chase & Co. pays an annual dividend of $5.60 per share and has a dividend yield of 1.8%. Interactive Brokers Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. JPMorgan Chase & Co. pays out 28.7% of its earnings in the form of a dividend. Interactive Brokers Group pays out 16.5% 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 raised its dividend for 15 consecutive years and Interactive Brokers Group has raised its dividend for 2 consecutive years. JPMorgan Chase & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares JPMorgan Chase & Co. and Interactive Brokers Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JPMorgan Chase & Co.	20.52%	16.93%	1.30%
Interactive Brokers Group	9.78%	4.92%	0.53%

Volatility & Risk

JPMorgan Chase & Co. has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Interactive Brokers Group has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

71.6% of JPMorgan Chase & Co. shares are held by institutional investors. Comparatively, 23.8% of Interactive Brokers Group shares are held by institutional investors. 0.5% of JPMorgan Chase & Co. shares are held by insiders. Comparatively, 3.0% of Interactive Brokers Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

JPMorgan Chase & Co. beats Interactive Brokers Group on 11 of the 17 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 Interactive Brokers Group

Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies. It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, the company offers custody, prime brokerage, securities, and margin lending services. It serves institutional and individual customers through electronic exchanges and market centers. The company was founded in 1977 and is headquartered in Greenwich, Connecticut.