Contrasting Royal Bank of Canada (NYSE:RY) and JSB Financial (OTCMKTS:JFWV)

JSB Financial (OTCMKTS:JFWV) and Royal Bank of Canada (NYSE:RY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Dividends

JSB Financial pays an annual dividend of $2.40 per share and has a dividend yield of 2.7%. Royal Bank of Canada pays an annual dividend of $4.15 per share and has a dividend yield of 3.7%. Royal Bank of Canada pays out 51.5% of its earnings in the form of a dividend. Royal Bank of Canada has increased its dividend for 14 consecutive years. Royal Bank of Canada is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares JSB Financial and Royal Bank of Canada’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JSB Financial	N/A	N/A	N/A
Royal Bank of Canada	12.12%	14.87%	0.81%

Risk and Volatility

JSB Financial has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for JSB Financial and Royal Bank of Canada, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JSB Financial	0	0	0	0	N/A
Royal Bank of Canada	0	2	5	1	2.88

Royal Bank of Canada has a consensus target price of $133.25, suggesting a potential upside of 18.17%. Given Royal Bank of Canada’s higher possible upside, analysts plainly believe Royal Bank of Canada is more favorable than JSB Financial.

Valuation & Earnings

This table compares JSB Financial and Royal Bank of Canada’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JSB Financial	N/A	N/A	$3.00 million	N/A	N/A
Royal Bank of Canada	$87.48 billion	1.82	$11.02 billion	$8.06	13.99

Royal Bank of Canada has higher revenue and earnings than JSB Financial.

Insider and Institutional Ownership

0.1% of JSB Financial shares are held by institutional investors. Comparatively, 45.3% of Royal Bank of Canada shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Royal Bank of Canada beats JSB Financial on 12 of the 13 factors compared between the two stocks.

About JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.

About Royal Bank of Canada

Royal Bank of Canada operates as a diversified financial service company worldwide. The company's Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, including auto financing, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses. This segment offers financial products and services through branches, automated teller machines, and mobile sales network. Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other advice-based solutions and strategies to high net worth and ultra-high net worth individuals, and institutional clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners. The company's Insurance segment offers life, health, home, auto, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; and business insurance services to individual, business, and group clients through its advice centers, RBC insurance stores, and mobile advisors; digital platforms; and independent brokers and partners. The company's Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments. The company was founded in 1864 and is headquartered in Toronto, Canada.