Siebert Financial (NASDAQ:SIEB) vs. JPMorgan Chase & Co. (NYSE:JPM) Critical Review

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

Institutional and Insider Ownership

71.6% of JPMorgan Chase & Co. shares are held by institutional investors. Comparatively, 1.5% of Siebert Financial shares are held by institutional investors. 0.5% of JPMorgan Chase & Co. shares are held by company insiders. Comparatively, 46.0% of Siebert Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares JPMorgan Chase & Co. and Siebert Financial”s top-line 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	2.96	$58.47 billion	$20.19	14.87
Siebert Financial	$83.90 million	1.61	$13.29 million	$0.24	13.96

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

	Net Margins	Return on Equity	Return on Assets
JPMorgan Chase & Co.	20.90%	17.18%	1.31%
Siebert Financial	11.00%	10.78%	1.73%

Analyst Ratings

This is a breakdown of current recommendations for JPMorgan Chase & Co. and Siebert Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JPMorgan Chase & Co.	3	9	14	2	2.54
Siebert Financial	0	1	0	0	2.00

JPMorgan Chase & Co. presently has a consensus target price of $322.27, indicating a potential upside of 7.33%. Given JPMorgan Chase & Co.’s stronger consensus rating and higher probable upside, analysts plainly believe JPMorgan Chase & Co. is more favorable than Siebert Financial.

Volatility & Risk

JPMorgan Chase & Co. has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Siebert Financial has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Summary

JPMorgan Chase & Co. beats Siebert Financial on 13 of the 15 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 Siebert Financial

Siebert Financial Corp., through its subsidiaries, engages in the retail brokerage and investment advisory businesses in the United States and Internationally. It offers self-directed trading, market making and fixed income investment, stock borrow, stock loan, equity compensation plans, wealth management, and financial advisory services; independent retail execution services; and retail customer services. The company also offers self-directed retirement accounts, as well as lends customers a portion of the market value of marginable securities held in the customer's account. In addition, the company provides data technology platform that offers various services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. Further, it offers a Robo-Advisor platform that provides clients with an automated wealth management solution; and various insurance products, such as fixed annuities, personal insurance, property and casualty insurance, natural disaster insurance, and life and disability. Siebert Financial Corp. was incorporated in 1934 and is headquartered in Miami Beach, Florida.