BMO vs. RY, TD, BNS, CM, NA, BN, MFC, IFC, SLF, and GWO
Should you be buying Bank of Montreal stock or one of its competitors? The main competitors of Bank of Montreal include Royal Bank of Canada (RY), Toronto-Dominion Bank (TD), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), National Bank of Canada (NA), Brookfield (BN), Manulife Financial (MFC), Intact Financial (IFC), Sun Life Financial (SLF), and Great-West Lifeco (GWO). These companies are all part of the "financial services" sector.
Royal Bank of Canada (TSE:RY) and Bank of Montreal (TSE:BMO) are both large-cap financial services companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, media sentiment, community ranking, profitability, earnings, dividends and risk.
51.9% of Royal Bank of Canada shares are held by institutional investors. Comparatively, 54.9% of Bank of Montreal shares are held by institutional investors. 0.0% of Bank of Montreal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Royal Bank of Canada received 97 more outperform votes than Bank of Montreal when rated by MarketBeat users. Likewise, 59.30% of users gave Royal Bank of Canada an outperform vote while only 52.81% of users gave Bank of Montreal an outperform vote.
Royal Bank of Canada pays an annual dividend of C$5.52 per share and has a dividend yield of 3.7%. Bank of Montreal pays an annual dividend of C$6.04 per share and has a dividend yield of 5.0%. Royal Bank of Canada pays out 51.5% of its earnings in the form of a dividend. Bank of Montreal pays out 82.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Royal Bank of Canada has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
Royal Bank of Canada has a net margin of 28.61% compared to Royal Bank of Canada's net margin of 17.71%. Bank of Montreal's return on equity of 13.66% beat Royal Bank of Canada's return on equity.
In the previous week, Bank of Montreal had 14 more articles in the media than Royal Bank of Canada. MarketBeat recorded 31 mentions for Bank of Montreal and 17 mentions for Royal Bank of Canada. Bank of Montreal's average media sentiment score of 0.89 beat Royal Bank of Canada's score of -0.35 indicating that Royal Bank of Canada is being referred to more favorably in the media.
Royal Bank of Canada currently has a consensus target price of C$143.38, suggesting a potential downside of 3.76%. Bank of Montreal has a consensus target price of C$132.78, suggesting a potential upside of 9.24%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, analysts plainly believe Bank of Montreal is more favorable than Royal Bank of Canada.
Royal Bank of Canada has higher revenue and earnings than Bank of Montreal. Royal Bank of Canada is trading at a lower price-to-earnings ratio than Bank of Montreal, indicating that it is currently the more affordable of the two stocks.
Summary
Royal Bank of Canada beats Bank of Montreal on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BMO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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