JPMorgan Chase & Co. (NYSE:JPM – Get Free Report) and MarketAxess (NASDAQ:MKTX – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Dividends
JPMorgan Chase & Co. pays an annual dividend of $6.00 per share and has a dividend yield of 1.9%. MarketAxess pays an annual dividend of $3.04 per share and has a dividend yield of 1.7%. JPMorgan Chase & Co. pays out 29.7% of its earnings in the form of a dividend. MarketAxess pays out 51.7% 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 increased its dividend for 15 consecutive years and MarketAxess has increased 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.
Analyst Ratings
This is a breakdown of recent ratings and price targets for JPMorgan Chase & Co. and MarketAxess, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JPMorgan Chase & Co. | 3 | 9 | 15 | 0 | 2.44 |
| MarketAxess | 2 | 7 | 4 | 0 | 2.15 |
Volatility and Risk
JPMorgan Chase & Co. has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, MarketAxess has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Insider & Institutional Ownership
71.6% of JPMorgan Chase & Co. shares are owned by institutional investors. Comparatively, 99.0% of MarketAxess shares are owned by institutional investors. 0.5% of JPMorgan Chase & Co. shares are owned by company insiders. Comparatively, 0.7% of MarketAxess shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares JPMorgan Chase & Co. and MarketAxess’ 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% |
| MarketAxess | 26.16% | 20.20% | 14.51% |
Valuation & Earnings
This table compares JPMorgan Chase & Co. and MarketAxess”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| JPMorgan Chase & Co. | $178.84 billion | 4.85 | $58.47 billion | $20.19 | 15.79 |
| MarketAxess | $839.26 million | 7.93 | $274.18 million | $5.88 | 30.44 |
JPMorgan Chase & Co. has higher revenue and earnings than MarketAxess. JPMorgan Chase & Co. is trading at a lower price-to-earnings ratio than MarketAxess, indicating that it is currently the more affordable of the two stocks.
Summary
JPMorgan Chase & Co. beats MarketAxess on 9 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 MarketAxess
MarketAxess Holdings Inc., together with its subsidiaries, operates an electronic trading platform for institutional investor and broker-dealer companies worldwide. The company offers trading technology that provides liquidity access in U.S. high-grade bonds, U.S. high-yield bonds, emerging market debt, eurobonds, municipal bonds, U.S. government bonds, and other fixed-income securities; and executes bond trades between and among institutional investor and broker-dealer clients in an all-to-all anonymous trading environment for corporate bonds through its Open Trading protocols. It also provides trading-related products and services, including composite+ pricing and other market data products to assist clients with trading decisions; auto-execution and other execution services for clients requiring specialized workflow solutions; connectivity solutions that facilitate straight-through processing; and technology services to optimize trading environments. In addition, the company offers various pre-and post-trade services, such as trade matching, trade publication, regulatory transaction reporting, and market and reference data across a range of fixed-income and other products. MarketAxess Holdings Inc. was incorporated in 2000 and is headquartered in New York, New York.
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