Comparing JPMorgan Chase & Co. (NYSE:JPM) & Oppenheimer (NYSE:OPY)

JPMorgan Chase & Co. (NYSE:JPM) and Oppenheimer (NYSE:OPY) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Dividends

JPMorgan Chase & Co. pays an annual dividend of $6.00 per share and has a dividend yield of 2.0%. Oppenheimer pays an annual dividend of $0.72 per share and has a dividend yield of 1.0%. JPMorgan Chase & Co. pays out 30.8% of its earnings in the form of a dividend. Oppenheimer pays out 9.3% 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 15 consecutive years and Oppenheimer has raised its dividend for 1 consecutive years. JPMorgan Chase & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares JPMorgan Chase & Co. and Oppenheimer”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	3.00	$58.47 billion	$19.49	15.61
Oppenheimer	$1.43 billion	0.51	$71.56 million	$7.71	9.02

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

	Net Margins	Return on Equity	Return on Assets
JPMorgan Chase & Co.	20.52%	16.93%	1.30%
Oppenheimer	5.88%	10.13%	2.50%

Volatility & Risk

JPMorgan Chase & Co. has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Oppenheimer has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for JPMorgan Chase & Co. and Oppenheimer, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JPMorgan Chase & Co.	3	8	15	0	2.46
Oppenheimer	0	0	1	0	3.00

JPMorgan Chase & Co. currently has a consensus target price of $309.95, indicating a potential upside of 1.85%. Given JPMorgan Chase & Co.’s higher possible upside, research analysts plainly believe JPMorgan Chase & Co. is more favorable than Oppenheimer.

Institutional & Insider Ownership

71.6% of JPMorgan Chase & Co. shares are owned by institutional investors. Comparatively, 32.3% of Oppenheimer shares are owned by institutional investors. 0.5% of JPMorgan Chase & Co. shares are owned by company insiders. Comparatively, 34.3% of Oppenheimer 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.

Summary

JPMorgan Chase & Co. beats Oppenheimer on 12 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 Oppenheimer

Oppenheimer Holdings Inc. operates as a middle-market investment bank and full-service broker-dealer in the Americas, Europe, the Middle East, and Asia. The company provides brokerage services covering corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, exchange-traded funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It offers asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, non-discretionary investment advisory and consultation services, alternative investments, portfolio enhancement programs, and institutional taxable fixed income portfolio management strategies and solutions, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, debt capital market, debt advisory and restructuring, and fund placement services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, event driven sales and trading, and portfolio and electronic trading. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; and proprietary trading and investment activities. Additionally, the company offers underwriting, market-making, trust, and discount services, as well as a cloud-based financial market. It serves high-net-worth individuals and families, corporate executives, public and private businesses, institutions and corporations, governments, financial sponsors, and domestic and international investors. Oppenheimer Holdings Inc. was founded in 1881 and is headquartered in New York, New York.