Comparing Solera National Bancorp (OTCMKTS:SLRK) and JPMorgan Chase & Co. (NYSE:JPM)

Solera National Bancorp (OTCMKTS:SLRK) and JPMorgan Chase & Co. (NYSE:JPM) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Risk and Volatility

Solera National Bancorp has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solera National Bancorp	$65.19 million	0.62	$16.66 million	$3.47	2.69
JPMorgan Chase & Co.	$170.34 billion	3.69	$49.55 billion	$17.93	12.22

JPMorgan Chase & Co. has higher revenue and earnings than Solera National Bancorp. Solera National 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 Solera National Bancorp and JPMorgan Chase & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solera National Bancorp	22.01%	N/A	N/A
JPMorgan Chase & Co.	20.32%	17.26%	1.31%

Analyst Ratings

This is a summary of recent recommendations and price targets for Solera National Bancorp and JPMorgan Chase & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solera National Bancorp	0	0	0	0	N/A
JPMorgan Chase & Co.	0	7	12	0	2.63

JPMorgan Chase & Co. has a consensus target price of $205.71, suggesting a potential downside of 6.13%. Given JPMorgan Chase & Co.’s higher probable upside, analysts clearly believe JPMorgan Chase & Co. is more favorable than Solera National Bancorp.

Institutional and Insider Ownership

71.6% of JPMorgan Chase & Co. shares are held by institutional investors. 17.4% of Solera National Bancorp shares are held by insiders. Comparatively, 0.8% 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 is poised for long-term growth.

Summary

JPMorgan Chase & Co. beats Solera National Bancorp on 11 of the 13 factors compared between the two stocks.

About Solera National Bancorp

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services in the United States. The company offers checking and savings accounts, money market accounts, time and demand deposits, and individual retirement accounts (IRA), as well as certificates of deposit; and real estate secured loans, construction loans, small business administration loans, business lines of credit, and equipment financing. It also provides online banking, account analysis, combined account analysis, commercial sweep, remote deposit, ACH origination, payroll direct deposit, merchant, business debit card, and cash management services. The company was incorporated in 2006 and is based in Lakewood, Colorado.

About JPMorgan Chase & Co.

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, investment and lending products, cash management, and payments and services; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit cards, auto loans, leases, and travel services to consumers and small businesses through bank branches, ATMs, and digital and telephone banking. The CIB segment provides investment banking products and services, including corporate strategy and structure advisory, and equity and debt market capital-raising services, as well as loan origination and syndication; payments; and cash 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, payments, investment banking, and asset management to small and midsized companies, local governments, nonprofit clients, and large corporations, as well as investors, developers, and owners of multifamily, office, retail, industrial, and affordable housing properties. The AWM segment offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; and retirement products and services, brokerage, custody, estate planning, lending, deposits, and investment management products to high net worth clients. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.