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JPM vs PSEC

JPM
JPMorgan Chase & Co.
NEUTRAL
Price
$313.68
Market Cap
$846.01B
Sector
Financial Services
AI Confidence
85%
PSEC
Prospect Capital Corporation
BEARISH
Price
$2.81
Market Cap
$1.37B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
JPM
15.68
PSEC
--
Forward P/E
JPM
13.42
PSEC
6.69
P/B Ratio
JPM
2.47
PSEC
0.45
P/S Ratio
JPM
5.03
PSEC
2.04
EV/EBITDA
JPM
--
PSEC
--

Profitability

Gross Margin
JPM
0.0%
PSEC
100.0%
Operating Margin
JPM
41.06%
PSEC
70.27%
Profit Margin
JPM
33.91%
PSEC
-34.88%
ROE
JPM
16.13%
PSEC
-4.85%
ROA
JPM
1.35%
PSEC
4.26%

Growth

Revenue Growth
JPM
2.5%
PSEC
-5.1%
Earnings Growth
JPM
-3.6%
PSEC
--

Financial Health

Debt/Equity
JPM
--
PSEC
0.4
Current Ratio
JPM
--
PSEC
0.74
Quick Ratio
JPM
--
PSEC
0.7

Dividends

Dividend Yield
JPM
1.91%
PSEC
19.22%
Payout Ratio
JPM
28.97%
PSEC
211.76%

AI Verdict

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%)
PSEC BEARISH

PSEC exhibits significant financial distress as evidenced by a weak Piotroski F-Score of 2/9 and a bearish technical trend. While the stock trades at a deep discount to book value (P/B 0.45), this is offset by an unsustainable dividend payout ratio of 211.76% and negative profit margins. The combination of negative ROE and a current ratio below 1.0 suggests liquidity risks and poor capital efficiency. Despite short-term price momentum, the long-term trajectory and fundamental health indicators point to a 'yield trap' scenario.

Strengths
Deeply undervalued relative to book value (P/B 0.45)
Extremely high current dividend yield (19.22%)
Positive short-term price momentum (1-month and 1-week gains)
Risks
Unsustainable dividend payout ratio (211.76%) indicating capital erosion
Very weak financial health (Piotroski F-Score 2/9)
Negative profit margins (-34.88%) and negative ROE (-4.85%)

Compare Another Pair

JPM vs PSEC: Head-to-Head Comparison

This page compares JPMorgan Chase & Co. (JPM) and Prospect Capital Corporation (PSEC) 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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