Financials
Largest US bank by assets, dominant in investment banking, consumer banking, and asset management.
View forensic reportBoth banks have rallied into earnings week. The valuation gap between them has tightened to a multi-year low. Which one is priced correctly?
JPMorgan trades at 15.5x earnings with a 33.9% profit margin — but Jamie Dimon's own warning about a brewing market storm suggests the bank's $836 billion market cap is priced for calm seas that aren't coming.
Net interest income defied rate-cut models, investment banking fees surged, and normalised earnings now look closer to $52-55 billion than our prior $45-48 billion estimate.
JPM trades at 15x earnings with a diversified franchise. GS trades at 17x as a pure-play investment bank and asset manager. The valuation gap has flipped — and we think GS has the edge.
BAC offers NIM expansion at 12.3x forward earnings, JPM delivers 21% ROTCE at 12.7x, and Goldman's IB pipeline recovery at 13.8x could drive 25-30% upside.
JPMorgan offers fortress-grade defence at 13.7x forward, Goldman Sachs rides capital markets momentum after an 89% surge, and Bank of America bets on rate sensitivity.
Net income of $57 billion and a 14.7x PE look compelling — but the risk picture has shifted since our last analysis, and not in the direction bulls want.
$191 billion in revenue, a 37% operating margin, and a capital return programme that makes most tech companies look timid. JPMorgan isn't just a bank — it's a capital allocation machine.