BMO vs. RY, MUFG, HDB, TD, IBN, SMFG, SAN, BBVA, ING, and CM
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), Mitsubishi UFJ Financial Group (MUFG), HDFC Bank (HDB), Toronto-Dominion Bank (TD), ICICI Bank (IBN), Sumitomo Mitsui Financial Group (SMFG), Banco Santander (SAN), Banco Bilbao Vizcaya Argentaria (BBVA), ING Groep (ING), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "commercial banks, not elsewhere classified" industry.
Bank of Montreal (NYSE:BMO) and Royal Bank of Canada (NYSE:RY) are both large-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, community ranking, valuation, dividends and media sentiment.
Royal Bank of Canada received 161 more outperform votes than Bank of Montreal when rated by MarketBeat users. However, 57.13% of users gave Bank of Montreal an outperform vote while only 55.72% of users gave Royal Bank of Canada an outperform vote.
Bank of Montreal presently has a consensus price target of $131.00, indicating a potential upside of 47.01%. Royal Bank of Canada has a consensus price target of $137.67, indicating a potential upside of 25.99%. Given Bank of Montreal's higher possible upside, research analysts clearly believe Bank of Montreal is more favorable than Royal Bank of Canada.
Bank of Montreal has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.
Royal Bank of Canada has a net margin of 12.12% compared to Bank of Montreal's net margin of 8.25%. Royal Bank of Canada's return on equity of 14.98% beat Bank of Montreal's return on equity.
45.8% of Bank of Montreal shares are held by institutional investors. Comparatively, 45.3% of Royal Bank of Canada shares are held by institutional investors. 1.0% of Bank of Montreal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
In the previous week, Bank of Montreal had 24 more articles in the media than Royal Bank of Canada. MarketBeat recorded 42 mentions for Bank of Montreal and 18 mentions for Royal Bank of Canada. Royal Bank of Canada's average media sentiment score of 1.23 beat Bank of Montreal's score of 0.33 indicating that Royal Bank of Canada is being referred to more favorably in the news media.
Bank of Montreal pays an annual dividend of $4.47 per share and has a dividend yield of 5.0%. Royal Bank of Canada pays an annual dividend of $4.08 per share and has a dividend yield of 3.7%. Bank of Montreal pays out 74.3% of its earnings in the form of a dividend. Royal Bank of Canada pays out 50.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
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 12 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 NYSE 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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