Financial Analysis: Skandinaviska (OTCMKTS:SVKEF) & JPMorgan Chase & Co. (NYSE:JPM)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Skandinaviska and JPMorgan Chase & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Skandinaviska	0	7	0	0	2.00
JPMorgan Chase & Co.	0	13	14	1	2.57

JPMorgan Chase & Co. has a consensus target price of $368.10, indicating a potential upside of 9.24%. Given JPMorgan Chase & Co.’s stronger consensus rating and higher probable upside, analysts plainly believe JPMorgan Chase & Co. is more favorable than Skandinaviska.

Institutional and Insider Ownership

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

Volatility & Risk

Skandinaviska has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Skandinaviska 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
Skandinaviska	$23.09 billion	1.87	$3.17 billion	$1.84	11.51
JPMorgan Chase & Co.	$280.35 billion	3.20	$57.05 billion	$23.84	14.13

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

	Net Margins	Return on Equity	Return on Assets
Skandinaviska	21.03%	15.43%	0.85%
JPMorgan Chase & Co.	21.85%	18.48%	1.32%

Summary

JPMorgan Chase & Co. beats Skandinaviska on 15 of the 15 factors compared between the two stocks.

About Skandinaviska

Skandinaviska Enskilda Banken AB (publ) provides corporate, retail, investment, and private banking services. The company operates through Large Corporates & Financial Institutions, Corporate & Private Customers, Private Wealth Management & Family Office, Baltic, Life, and Investment Management divisions. It offers treasury advisory services; factoring and receivable, trade, and export financing; markets and trading, such as equities, fixed income, commodities, and foreign exchange; financial services, including investment, financing, and ownership; and shipping and real estate finance. In addition, it offers venture capital for entrepreneurs and innovators; private wealth management; investor services; asset management and life insurance products that include funds, tailored portfolios, and life insurance; fixed income, commodities, debt capital market, and equity research; investment banking; venture capital; and cash management products comprising integration service, file integration network, and payment solutions. The company serves large corporates, financial institutions, private individuals, and small and medium-sized companies. It operates in Sweden, Norway, Denmark, Finland, Estonia, Latvia, Lithuania, Germany, the United Kingdom, Austria, the United States, Ireland, Luxembourg, Switzerland, Brazil, India, China, the Netherlands, Singapore, Russia, Poland, Hong Kong, Ukraine, and internationally. The company was founded in 1856 and is headquartered in Stockholm, Sweden.

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.