Analyzing JPMorgan Chase & Co. (NYSE:JPM) and FXCM (OTCMKTS:GLBR)

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

Institutional and Insider Ownership

71.6% of JPMorgan Chase & Co. shares are owned by institutional investors. 0.5% of JPMorgan Chase & Co. shares are owned by insiders. Comparatively, 9.0% of FXCM shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JPMorgan Chase & Co.	20.52%	16.93%	1.30%
FXCM	N/A	N/A	N/A

Risk & Volatility

JPMorgan Chase & Co. has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, FXCM has a beta of -2.31, meaning that its stock price is 331% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for JPMorgan Chase & Co. and FXCM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JPMorgan Chase & Co.	3	8	15	0	2.46
FXCM	0	0	0	0	0.00

JPMorgan Chase & Co. presently has a consensus price target of $307.70, indicating a potential downside of 0.71%. Given JPMorgan Chase & Co.’s stronger consensus rating and higher possible upside, research analysts clearly believe JPMorgan Chase & Co. is more favorable than FXCM.

Earnings and Valuation

This table compares JPMorgan Chase & Co. and FXCM”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JPMorgan Chase & Co.	$278.91 billion	3.06	$58.47 billion	$19.49	15.90
FXCM	N/A	N/A	N/A	N/A	N/A

JPMorgan Chase & Co. has higher revenue and earnings than FXCM.

Summary

JPMorgan Chase & Co. beats FXCM on 9 of the 10 factors compared between the two stocks.

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.

About FXCM

Global Brokerage, Inc., through its subsidiaries, provides online foreign exchange (FX) trading, contracts for difference trading, spread betting, and related services to retail and institutional customers worldwide. Its proprietary trading platform presents its FX customers with the price quotations on various currency pairs from a range of global banks, financial institutions, and market makers. The company also acts as a credit intermediary and simultaneously entering into trades with the customer and the FX market maker. It offers its customers access to over-the-counter FX markets. The company was formerly known as FXCM Inc. and changed its name to Global Brokerage, Inc. in February 2017. Global Brokerage, Inc. was incorporated in 2010 and is based in New York, New York. On March 23, 2023, an involuntary petition for liquidation under Chapter 7 was filed against Global Brokerage, Inc. in the U.S. Bankruptcy Court for the Southern District of New York. On May 19, 2023, the involuntary petition was approved by the Court.