JPMorgan Chase & Co. (NASDAQ: FLIC) and First of Long Island (NASDAQ:FLIC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Volatility and Risk
JPMorgan Chase & Co. has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, First of Long Island has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
JPMorgan Chase & Co. pays an annual dividend of $2.24 per share and has a dividend yield of 2.0%. First of Long Island pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. JPMorgan Chase & Co. pays out 32.6% of its earnings in the form of a dividend. First of Long Island pays out 40.5% 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 7 consecutive years and First of Long Island has raised its dividend for 11 consecutive years. First of Long Island is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
72.0% of JPMorgan Chase & Co. shares are held by institutional investors. Comparatively, 55.9% of First of Long Island shares are held by institutional investors. 0.7% of JPMorgan Chase & Co. shares are held by insiders. Comparatively, 4.6% of First of Long Island shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares JPMorgan Chase & Co. and First of Long Island’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|JPMorgan Chase & Co.||22.80%||13.18%||1.18%|
|First of Long Island||28.08%||11.05%||0.98%|
Earnings & Valuation
This table compares JPMorgan Chase & Co. and First of Long Island’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|JPMorgan Chase & Co.||$113.90 billion||3.45||$24.44 billion||$6.87||16.69|
|First of Long Island||$125.09 million||4.46||$35.12 million||$1.48||14.83|
JPMorgan Chase & Co. has higher revenue and earnings than First of Long Island. First of Long Island 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.
This is a breakdown of current recommendations for JPMorgan Chase & Co. and First of Long Island, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|JPMorgan Chase & Co.||0||9||13||0||2.59|
|First of Long Island||0||2||0||0||2.00|
JPMorgan Chase & Co. presently has a consensus target price of $119.61, indicating a potential upside of 4.32%. First of Long Island has a consensus target price of $29.50, indicating a potential upside of 34.40%. Given First of Long Island’s higher probable upside, analysts clearly believe First of Long Island is more favorable than JPMorgan Chase & Co..
JPMorgan Chase & Co. beats First of Long Island on 11 of the 17 factors compared between the two stocks.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. The Consumer & Community Banking segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; residential mortgages and home equity loans; and credit cards, payment processing services, auto loans and leases. The Corporate & Investment Bank 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 Commercial Banking segment offers 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 Asset & Wealth Management segment provides 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 services; and brokerage and banking services comprising trusts, estates, loans, mortgages, and deposits. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.
About First of Long Island
The First of Long Island Corporation operates as the holding company for The First National Bank of Long Island that provides financial services to privately owned businesses, professionals, consumers, public bodies, and other organizations. Its deposit products include business and small business checking, personal checking products, savings accounts, negotiable order of withdrawal accounts and IOLA, escrow service accounts, rent security accounts, time deposits, holiday club accounts, and individual retirement accounts, as well as personal and non-personal money market and savings products. The company's loan portfolio comprises commercial and industrial loans, small business credit scored loans, residential and commercial mortgage loans, home equity lines of credit, construction loans, and commercial and standby letters of credit, as well as auto, home improvement, and other consumer loans. It also offers account reconciliation services, ACH origination, ATM banking and deposit automation, bank by mail, bill payment, cash management services, collection services, controlled disbursement accounts, foreign currency sales and purchases, healthcare remittance automation, debit cards, lock box services, merchant credit card services, and mobile capture services, as well as mutual funds, annuities, and life insurance. In addition, the company provides night depository services, payroll services, personal money orders, remote deposit, safe deposit boxes, securities transactions, signature guarantee services, travelers checks, investment management and trust services, domestic and international wire transfers, and withholding tax depository services, as well as drive-through, mobile, online, and telephone banking services. It operates through a network of 37 full service branches, 10 commercial banking offices and 2 select service banking centers in New York. The First of Long Island Corporation was founded in 1927 and is based in Glen Head, New York.
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