Shares of JPMorgan Chase have now returned 8% this year, following a 36% return increase in 2012. The shares trade for 1.2 times tangible book value, according to Thomson Reuters Bank Insight, and for 8.2 times the consensus 2014 earnings estimate of $5.75, among analysts polled by Thomson Reuters. Based on a 30-cent quarterly payout, the shares have a dividend yield of 2.55%. Stifel Nicolaus analyst Christopher Mutascio on Monday said in a report that JPMorgan "trades at the lowest P/E multiple within our large-cap bank coverage universe." The large-company banks covered by Stifel Nicolaus were trading at an average of 9.7 times the firm's 2014 earnings estimates. Mutascio said the market was likely keeping the valuation of JPMorgan shares behind peers because of the company's "size, exposure to re-regulation, and the 'London Whale' fiasco." But he said that his projected 2014 return on average total assets (ROA) of 0.95% for JPMorgan "is only modestly lower than the peer group average/median range of 1% to 1.07%." The analyst asked whether JPMorgan should "trade at a 31% discount to CMA, a 20% discount to STI, and a 19% discount to KEY -- all of which have the same, if not lower, projected ROAs." Mutascio estimates that the 2014 ROA for Comerica ( CMA) will be 0.75%, while the ROA for SunTrust ( STI) will be 0.87% and for KeyCorp ( KEY) will be 0.94%. JPM data by YCharts
Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock. -- Written by Philip van Doorn in Jupiter, Fla.
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