Head to Head Contrast: CBTX (NASDAQ:CBTX) & JPMorgan Chase & Co. (NASDAQ:JPM)

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

Profitability

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

Net Margins Return on Equity Return on Assets
CBTX 31.19% 10.14% 1.51%
JPMorgan Chase & Co. 24.28% 14.23% 1.25%

Valuation and Earnings

This table compares CBTX and JPMorgan Chase & Co.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBTX $137.51 million 5.35 $47.29 million $1.89 14.96
JPMorgan Chase & Co. $131.41 billion 2.70 $32.47 billion $9.00 12.17

JPMorgan Chase & Co. has higher revenue and earnings than CBTX. JPMorgan Chase & Co. is trading at a lower price-to-earnings ratio than CBTX, indicating that it is currently the more affordable of the two stocks.

Dividends

CBTX pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. JPMorgan Chase & Co. pays an annual dividend of $3.20 per share and has a dividend yield of 2.9%. CBTX pays out 21.2% of its earnings in the form of a dividend. JPMorgan Chase & Co. pays out 35.6% 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 8 consecutive years. JPMorgan Chase & Co. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for CBTX and JPMorgan Chase & Co., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBTX 0 2 0 0 2.00
JPMorgan Chase & Co. 0 9 10 0 2.53

CBTX presently has a consensus target price of $35.00, suggesting a potential upside of 23.76%. JPMorgan Chase & Co. has a consensus target price of $123.69, suggesting a potential upside of 12.92%. Given CBTX’s higher probable upside, research analysts clearly believe CBTX is more favorable than JPMorgan Chase & Co..

Volatility and Risk

CBTX has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Insider & Institutional Ownership

28.8% of CBTX shares are owned by institutional investors. Comparatively, 71.5% of JPMorgan Chase & Co. shares are owned by institutional investors. 29.2% of CBTX shares are owned by insiders. Comparatively, 0.8% of JPMorgan Chase & Co. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

JPMorgan Chase & Co. beats CBTX on 10 of the 17 factors compared between the two stocks.

CBTX Company Profile

CBTX, Inc. operates as the bank holding company for CommunityBank of Texas, National Association that provides commercial banking solutions to small and mid-sized businesses, and professionals in the United States. The company offers various deposit products, including demand, savings, money market, and time accounts; and loans, such as commercial and industrial loans, commercial real estate loans, construction and development loans, 1-4 family residential mortgage loans, multi-family residential loans, consumer loans, and agricultural loans. It also provides treasury and online banking services. CBTX, Inc. operates 35 banking locations, including 19 branches in Houston; 15 branches in Beaumont; and 1 branch in Dallas. The company was formerly known as CBFH, Inc. and changed its name to CBTX, Inc. in September 2017. CBTX, Inc. was founded in 2007 and is based in Houston, Texas.

JPMorgan Chase & Co. Company Profile

JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit card, payment processing, auto loan, and leasing services. The CIB segment provides investment banking products and services, including advising on corporate strategy and structure, and capital-raising in equity and debt markets, as well as loan origination and syndication; treasury services, such as cash management and liquidity solutions; and cash securities and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The CB segment provides financial solutions, including lending, treasury, investment banking, and asset management to corporations, municipalities, financial institutions, and nonprofit entities, as well as financing to real estate investors and owners. The AWM segment offers investment and wealth management services across various asset classes, such as equities, fixed income, alternatives, and money market funds; multi-asset investment management services; retirement products and services; and brokerage and banking services comprising trusts, estates, loans, mortgages, and deposits. The company also provides ATMs; digital covering online and mobile; and telephone banking services. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.

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