Analyzing CoastalSouth Bancshares (NYSE:COSO) & JPMorgan Chase & Co. (NYSE:JPM)

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

Insider & Institutional Ownership

71.6% of JPMorgan Chase & Co. shares are held by institutional investors. 15.1% of CoastalSouth Bancshares shares are held by company insiders. Comparatively, 0.4% of JPMorgan Chase & Co. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares CoastalSouth Bancshares and JPMorgan Chase & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoastalSouth Bancshares	19.59%	10.57%	1.18%
JPMorgan Chase & Co.	21.86%	18.23%	1.33%

Dividends

CoastalSouth Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. JPMorgan Chase & Co. pays an annual dividend of $6.60 per share and has a dividend yield of 2.0%. CoastalSouth Bancshares pays out 9.0% of its earnings in the form of a dividend. JPMorgan Chase & Co. pays out 28.3% 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 increased its dividend for 15 consecutive years. JPMorgan Chase & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares CoastalSouth Bancshares and JPMorgan Chase & Co.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoastalSouth Bancshares	$135.78 million	2.34	$24.89 million	$2.22	11.99
JPMorgan Chase & Co.	$280.35 billion	3.16	$57.05 billion	$23.34	14.27

JPMorgan Chase & Co. has higher revenue and earnings than CoastalSouth Bancshares. CoastalSouth Bancshares 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.

Risk & Volatility

CoastalSouth Bancshares has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for CoastalSouth Bancshares and JPMorgan Chase & Co., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoastalSouth Bancshares	1	0	1	1	2.67
JPMorgan Chase & Co.	0	13	14	1	2.57

CoastalSouth Bancshares currently has a consensus target price of $30.00, indicating a potential upside of 12.68%. JPMorgan Chase & Co. has a consensus target price of $362.88, indicating a potential upside of 8.97%. Given CoastalSouth Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe CoastalSouth Bancshares is more favorable than JPMorgan Chase & Co..

Summary

JPMorgan Chase & Co. beats CoastalSouth Bancshares on 13 of the 17 factors compared between the two stocks.

About CoastalSouth Bancshares

CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. Today, we have a community banking presence in some of the fastest growing and most business-friendly markets in the U.S., namely the Lowcountry of South Carolina (Hilton Head Island, Bluffton, and Beaufort), nearby Savannah, Georgia, and the Atlanta, Georgia market. — In addition to our traditional community banking operations, we operate four specialty lines of business that provide scalability and diversification: • Senior Housing Lending – focuses on lending to operators across the spectrum of senior care, with an emphasis on assisted living; • Marine Lending – focuses on consumer loans primarily to high-net-worth borrowers secured by yachts and high-end sport fishing vessels; • Government Guaranteed Lending – focuses on origination of small business and other loans guaranteed by the SBA and USDA; and • Mortgage Banker Finance – focuses on mortgage warehouse lending to mortgage originators. By combining the relationship-based focus of a community bank with our specialty lines of business, we believe we can capitalize on the substantial growth opportunities available in our markets, particularly given the scarcity of community banks between $1.5 billion and $5.0 billion in total assets. Our principal executive offices are located in Atlanta, Georgia.

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.