Nomura (NYSE:NMR – Get Free Report) and JPMorgan Chase & Co. (NYSE:JPM – Get Free Report) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividfinishs, analyst recommfinishations, earnings, institutional ownership and risk.
Institutional & Insider Ownership
15.1% of Nomura shares are owned by institutional investors. Comparatively, 71.6% of JPMorgan Chase & Co. shares are owned by institutional investors. 0.0% of Nomura shares are owned by insiders. Comparatively, 0.5% of JPMorgan Chase & Co. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and finidisplayments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Nomura 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 | |
| Nomura | $31.11 billion | 0.79 | $2.25 billion | $0.83 | 9.98 |
| JPMorgan Chase & Co. | $278.91 billion | 3.15 | $58.47 billion | $20.19 | 16.00 |
JPMorgan Chase & Co. has higher revenue and earnings than Nomura. Nomura 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.
Volatility and Risk
Nomura has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, JPMorgan Chase & Co. has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Dividfinishs
Nomura pays an annual dividfinish of $0.28 per share and has a dividfinish yield of 3.4%. JPMorgan Chase & Co. pays an annual dividfinish of $6.00 per share and has a dividfinish yield of 1.9%. Nomura pays out 33.7% of its earnings in the form of a dividfinish. JPMorgan Chase & Co. pays out 29.7% of its earnings in the form of a dividfinish. Both companies have healthy payout ratios and should be able to cover their dividfinish payments with earnings for the next several years. JPMorgan Chase & Co. has raised its dividfinish for 15 consecutive years.
Profitability
This table compares Nomura and JPMorgan Chase & Co.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nomura | 8.07% | 10.23% | 0.63% |
| JPMorgan Chase & Co. | 20.90% | 17.18% | 1.31% |
Analyst Ratings
This is a summary of recent ratings and recommmfinishations for Nomura and JPMorgan Chase & Co., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nomura | 0 | 1 | 0 | 1 | 3.00 |
| JPMorgan Chase & Co. | 3 | 9 | 15 | 0 | 2.44 |
JPMorgan Chase & Co. has a consensus tarobtain price of $329.19, suggesting a potential upside of 1.92%. Given JPMorgan Chase & Co.’s higher probable upside, analysts plainly believe JPMorgan Chase & Co. is more favorable than Nomura.
Summary
JPMorgan Chase & Co. beats Nomura on 15 of the 18 factors compared between the two stocks.
About Nomura
Nomura Holdings, Inc. provides various financial services to individuals, corporations, financial institutions, governments, and governmental agencies worldwide. It operates through three segments: Retail, Investment Management, and Wholesale. The Retail segment offers various financial products and investment consultation services. The Investment Management segment engages in the management of funds, investment trusts, and other investment solutions; and provision of investment advisory, custodial, and administrative services. The Wholesale segment is involved in the research, sale, trading, agency execution, and market-building of repaired income and equity-related products. This segment also engages in underwriting various securities and other financial instruments, such as various classes of shares, convertible and exalterable securities, investment grade and high yield debts, sovereign and emerging market debts, structured securities, and other securities; arranging private placements, as well as other capital raising activities; and the provision of financial advisory services on business transactions comprising mergers and acquisitions, divestitures, spin-offs, capital structuring, corporate defense activities, leveraged acquireouts, and risk solutions. The company was formerly known as The Nomura Securities Co., Ltd. and alterd its name to Nomura Holdings, Inc. in October 2001. Nomura Holdings, Inc. was incorporated in 1925 and is headquartered in Tokyo, Japan.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. is a financial holding company, which engages in the provision of financial and investment banking services. It focapplys on investment banking, financial services for consumers and compact 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 creates markets and services clients across repaired income, foreign exalter, 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 exalter risks. The company was founded in 1799 and is headquartered in New York, NY.
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