Compare Bank of Montreal (BMO) vs JPMorgan Chase & Co. (JPM) Stock

JPMorgan Chase & Co. (JPM) offers the better valuation at 15.2x trailing P/E (13.9x forward), making it the more compelling value choice. Analysts rate Bank of Montreal (BMO) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, JPMorgan Chase & Co. (JPM) is the cheapest at 15.2x versus Bank of Montreal at 17.2x. On forward P/E, Bank of Montreal is actually cheaper at 10.2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: JPMorgan Chase & Co. wins at 1.07x versus Bank of Montreal's 1.17x — a reasonable growth-adjusted valuation.

Over the past 5 years, JPMorgan Chase & Co. (JPM) delivered a total return of +114.5%, compared to +97.1% for Bank of Montreal (BMO). A $10,000 investment in JPM five years ago would be worth approximately $21K today (assuming dividends reinvested). Over 10 years, the gap is even starker: JPM returned +497.7% versus BMO's +227.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Bank of Montreal (BMO) is the lower-risk stock at 0.66β versus JPMorgan Chase & Co.'s 1.00β — meaning JPM is approximately 51% more volatile than BMO relative to the S&P 500. On balance sheet safety, JPMorgan Chase & Co. (JPM) carries a lower debt/equity ratio of 2% versus 5% for Bank of Montreal — giving it more financial flexibility in a downturn.

JPMorgan Chase & Co. (JPM) is the more profitable company, earning 21.6% net margin versus 11.1% for Bank of Montreal — meaning it keeps 21.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JPM leads at 27.7% versus 14.8% for BMO. At the gross margin level — before operating expenses — JPM leads at 58.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, JPMorgan Chase & Co. (JPM) is the more undervalued stock at a PEG of 1.07x versus Bank of Montreal's 1.17x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Bank of Montreal (BMO) trades at 10.2x forward P/E versus 13.9x for JPMorgan Chase & Co. — 3.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for JPM: 11.9% to $336.10.

All stocks in this comparison pay dividends. Bank of Montreal (BMO) offers the highest yield at 3.5%, versus 1.7% for JPMorgan Chase & Co. (JPM).

For long-horizon retirement investors, Bank of Montreal (BMO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.66), 3.5% yield, +227.9% 10Y return). Both have compounded well over 10 years (BMO: +227.9%, JPM: +497.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.