JPMorgan Chase & Co. (JPM)vs Bank of America Corporation (BAC)

Quick verdict

The number that separates these two most cleanly is return on equity: JPMorgan earned 17.79% on shareholders' funds in the twelve months to June 2026, against 11.23% at Bank of America. For a bank, that gap is the whole argument — it explains why the market pays 2.54 times book for JPM and only 1.46 times book for BAC at the 4 September 2026 close. The question is whether the discount is wide enough to compensate. On our factor scoring Bank of America edges it 3.5 to 2.5, winning valuation and shareholder income, while JPMorgan takes growth outright and quality, balance sheet and momentum are rated too close to call. JPMorgan is the larger, faster-compounding franchise at a premium price; Bank of America is the cheaper asset with the bigger buyback. Neither reading is obviously wrong on these figures.

At-a-glance comparison

Business model and revenue mix

Both are US diversified banks listed on the NYSE, and both span the same four broad activities: consumer banking, wealth and asset management, corporate and commercial lending, and investment banking. The difference is scale and mix. JPMorgan generated revenue of $199.4bn in the twelve months to June 2026 and net income of $65.1bn, against $119.2bn and $33.6bn at Bank of America — roughly two-thirds more revenue and close to double the earnings. Market capitalisation follows: $953.3bn versus $438.3bn at the 4 September 2026 close. Share counts differ markedly too, with about 2.66bn JPMorgan shares against roughly 6.99bn at Bank of America, which is why headline EPS of $23.34 and $4.33 are not directly comparable in isolation. Both report a December fiscal year end and both figures here are trailing twelve months drawn from SEC filings.

Valuation

On price, Bank of America takes it. Its trailing P/E of 14.48 sits below JPMorgan's 15.37, its price-to-sales of 3.68 below 4.78, and — the measure that usually matters most for a bank — its price-to-book of 1.46 is far beneath JPMorgan's 2.54. Book value is the cleaner anchor here because a bank's balance sheet is its inventory, and on that basis investors are paying roughly a three-quarters premium to net asset value for JPMorgan versus under a half for Bank of America. The counterweight is PEG, which adjusts for growth: JPMorgan's 0.84 looks considerably better than Bank of America's 2.37, reflecting the faster earnings trajectory described below. So the discount is real but it is a discount on a slower-growing franchise, not a free option.

Growth profile

Here the advantage is JPMorgan's, and it is not close. From fiscal 2022 to fiscal 2025, JPMorgan compounded revenue at 12.34% a year and earnings per share at 18.31%, while Bank of America managed 6.00% and 6.10% over the same three years. Stretch the window back to fiscal 2020 and the revenue gap persists — 8.75% against 5.75% annually — though the EPS comparison narrows sharply, with Bank of America at 15.30% a year against JPMorgan's 17.65%. That five-year EPS figure for Bank of America is flattered by its 2020 starting point, when pandemic-era credit provisions depressed bank earnings across the sector; the three-year series is the more representative read. On both windows JPMorgan grew faster on revenue, which is the harder line to expand.

Profitability and quality

Margins point the same way as returns, if less dramatically. JPMorgan converted 32.63% of trailing revenue into net profit in the twelve months to June 2026, against 28.21% at Bank of America — a gap of a little over four percentage points on a similar business mix. In absolute terms that is $65.1bn of net income on $199.4bn of revenue versus $33.6bn on $119.2bn. Our quality factor nonetheless scores as a tie: the margin and return figures favour JPMorgan, but on the full set of quality inputs the two are rated too close to separate. Note that no operating-margin or free-cash-flow figures are shown for either bank; for lenders those measures are not meaningful, since interest expense is a cost of doing business rather than a financing item.

Balance-sheet risk

This factor is rated a tie, and the honest reason is that the usual tools do not work on banks. Cash and total debt have been withheld for both companies because deposits and wholesale funding are operating raw material for a lender, not a leverage problem to be netted off — a net-debt calculation here would be meaningless. What DATA does hold is shareholders' equity: $374.6bn at JPMorgan as at 30 June 2026, against $301.1bn at Bank of America. JPMorgan therefore carries the larger capital base in absolute terms, consistent with its greater size, but the figures available do not support a judgement on relative capital strength, asset quality or funding mix. On the evidence here, neither balance sheet can be called superior.

Price performance and shareholder returns

Returns are where the two franchises diverge most. JPMorgan's 17.79% return on equity over the twelve months to June 2026 is more than six percentage points above Bank of America's 11.23%, and since both are measured against a large, regulated equity base rather than one shrunk by decades of buybacks, the comparison is a fair one. Shareholder distributions tell a different story. Bank of America yields 1.75% in dividends against JPMorgan's 1.67%, pays out 29.04% of earnings versus 26.61%, and — the decisive gap — retired stock worth 5.67% of its market value over the period against 3.32% at JPMorgan. Our income factor goes to Bank of America on that combined cash return. JPMorgan paid $6.00 per share in dividends over the trailing year, Bank of America $1.10.

Which stock fits which investor

The split is fairly clean. An investor screening on price would lean to Bank of America: 1.46 times book, 14.48 times trailing earnings and a combined dividend-plus-buyback return led by that 5.67% buyback yield. Someone prioritising compounding would lean to JPMorgan, on 12.34% three-year revenue growth, 18.31% three-year EPS growth and a 0.84 PEG that says the premium multiple is at least partly earned. Income seekers have a marginal case for Bank of America on yield, 1.75% against 1.67%, though both payout ratios sit under 30% and leave room either way. On quality the two are rated too close to call despite JPMorgan's higher ROE and net margin. Overall our scoring favours Bank of America 3.5 to 2.5 — driven by valuation and distributions rather than by operating performance.

• Value: BAC
• Growth: JPM
• Income: BAC
• Quality: Too close to call

Frequently asked questions

Which bank is cheaper, JPM or BAC?

Bank of America, on every price multiple in this data as at the 4 September 2026 close: a P/E of 14.48 versus 15.37, price-to-sales of 3.68 versus 4.78, and price-to-book of 1.46 versus JPMorgan's 2.54. Price-to-book is the most telling for banks. The one exception is PEG, where JPMorgan's 0.84 beats Bank of America's 2.37.

Why is JPMorgan's return on equity so much higher?

The data shows the outcome rather than the cause: JPMorgan earned 17.79% on equity in the twelve months to June 2026 against Bank of America's 11.23%, alongside a higher net margin of 32.63% versus 28.21%. Both figures are struck on large regulated equity bases — $374.6bn and $301.1bn respectively — so the gap is not a buyback artefact.

Which pays more back to shareholders?

Bank of America, on the combined figures. Its dividend yield of 1.75% narrowly exceeds JPMorgan's 1.67%, and its buyback yield of 5.67% is well ahead of JPMorgan's 3.32%. Payout ratios are 29.04% and 26.61% respectively, leaving both with substantial retained earnings.

Why are cash and debt figures missing for both banks?

They have been withheld because they are not interpretable for lenders. Deposits and wholesale funding are the raw material of a bank's business rather than balance-sheet strain, so netting cash against debt would produce a misleading number. Shareholders' equity — $374.6bn at JPMorgan and $301.1bn at Bank of America as at 30 June 2026 — is shown instead.

Is Bank of America's five-year EPS growth comparable to JPMorgan's?

Not directly. Bank of America's 15.30% annual EPS growth from fiscal 2020 to fiscal 2025 starts from a pandemic-depressed base, which flatters it; over the three years from fiscal 2022 it slows to 6.10%, against JPMorgan's 18.31%.

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