American Express vs JPMorgan Chase

American Express and JPMorgan Chase are two of the most well-known and established financial institutions in the United States. Both companies offer a wide range of financial products and services, including credit cards, investment banking, and wealth management. Despite their similarities, there are key differences between the two companies' stocks. American Express is known for its strong brand and loyal customer base, while JPMorgan Chase is recognized for its diverse revenue streams and global presence. Investors looking to choose between these two stocks should carefully consider their financial goals and risk tolerance.

American Express or JPMorgan Chase?

When comparing American Express and JPMorgan Chase, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between American Express and JPMorgan Chase.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. American Express has a dividend yield of 0.98%, while JPMorgan Chase has a dividend yield of 2.08%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. American Express reports a 5-year dividend growth of 10.01% year and a payout ratio of 19.17%. On the other hand, JPMorgan Chase reports a 5-year dividend growth of 10.31% year and a payout ratio of 26.07%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with American Express P/E ratio at 20.13 and JPMorgan Chase's P/E ratio at 11.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. American Express P/B ratio is 6.70 while JPMorgan Chase's P/B ratio is 1.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, American Express has seen a 5-year revenue growth of 0.74%, while JPMorgan Chase's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with American Express's ROE at 34.61% and JPMorgan Chase's ROE at 16.34%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $275.11 for American Express and $218.88 for JPMorgan Chase. Over the past year, American Express's prices ranged from $140.91 to $277.70, with a yearly change of 97.08%. JPMorgan Chase's prices fluctuated between $135.19 and $225.48, with a yearly change of 66.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.