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HIO vs JPM

HIO
Western Asset High Income Opportunity Fund Inc.
NEUTRAL
Price
$3.67
Market Cap
$349.0M
Sector
Financial Services
AI Confidence
85%
JPM
JPMorgan Chase & Co.
NEUTRAL
Price
$313.68
Market Cap
$846.01B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
HIO
13.11
JPM
15.68
Forward P/E
HIO
--
JPM
13.42
P/B Ratio
HIO
0.9
JPM
2.47
P/S Ratio
HIO
10.52
JPM
5.03
EV/EBITDA
HIO
--
JPM
--

Profitability

Gross Margin
HIO
100.0%
JPM
0.0%
Operating Margin
HIO
88.64%
JPM
41.06%
Profit Margin
HIO
78.84%
JPM
33.91%
ROE
HIO
6.62%
JPM
16.13%
ROA
HIO
4.58%
JPM
1.35%

Growth

Revenue Growth
HIO
-7.4%
JPM
2.5%
Earnings Growth
HIO
6.4%
JPM
-3.6%

Financial Health

Debt/Equity
HIO
--
JPM
--
Current Ratio
HIO
0.53
JPM
--
Quick Ratio
HIO
0.51
JPM
--

Dividends

Dividend Yield
HIO
11.61%
JPM
1.91%
Payout Ratio
HIO
152.14%
JPM
28.97%

AI Verdict

HIO NEUTRAL

HIO exhibits a stable financial foundation with a Piotroski F-Score of 5/9, and it currently trades at a discount to both its Graham Number ($5.07) and Intrinsic Value ($4.65). However, the fund's dividend profile is highly alarming, with a payout ratio of 152.14%, indicating that distributions are not being covered by earnings. While valuation metrics are attractive (P/B of 0.90), negative revenue growth and a completely bearish technical trend suggest significant headwinds. The asset appears undervalued on a balance sheet basis but carries high risk regarding dividend sustainability.

Strengths
Trading below Graham Number ($5.07) and Intrinsic Value ($4.65)
Price-to-Book ratio of 0.90 indicates the fund is trading at a discount to NAV
Stable Piotroski F-Score of 5/9
Risks
Unsustainable payout ratio of 152.14% suggesting capital erosion
Negative year-over-year revenue growth (-7.40%)
Bearish technical trend (0/100 score)
JPM NEUTRAL

JPM exhibits a concerning Piotroski F-Score of 2/9, indicating weak short-term fundamental health, and currently trades at a significant premium to both its Graham Number ($239.11) and Intrinsic Value ($140.07). While the company maintains a strong ROE of 16.13% and dominant market positioning, negative YoY earnings growth (-3.60%) and bearish insider activity from the CEO and CFO signal internal caution. The stock's current price of $313.68 suggests the market is pricing in a growth premium that is not currently supported by the deterministic health or value metrics.

Strengths
Strong profitability with a 33.91% profit margin
Robust Return on Equity (ROE) of 16.13%
Conservative dividend payout ratio of 28.97%
Risks
Very low Piotroski F-Score (2/9) suggesting deteriorating financial health
Significant overvaluation relative to Intrinsic Value ($140.07)
Negative Year-over-Year earnings growth (-3.60%)

Compare Another Pair

HIO vs JPM: Head-to-Head Comparison

This page compares Western Asset High Income Opportunity Fund Inc. (HIO) and JPMorgan Chase & Co. (JPM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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