BMO vs. BNS, CM, TD, NA, RY, BN, MFC, IFC, GWO, and SLF
Should you be buying Bank of Montreal stock or one of its competitors? The main competitors of Bank of Montreal include Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), Toronto-Dominion Bank (TD), National Bank of Canada (NA), Royal Bank of Canada (RY), Brookfield (BN), Manulife Financial (MFC), Intact Financial (IFC), Great-West Lifeco (GWO), and Sun Life Financial (SLF). These companies are all part of the "financial services" sector.
Bank of Montreal (TSE:BMO) and Bank of Nova Scotia (TSE:BNS) are both large-cap financial services companies, but which is the better business? We will compare the two businesses based on the strength of their community ranking, analyst recommendations, valuation, profitability, media sentiment, risk, dividends, earnings and institutional ownership.
Bank of Montreal presently has a consensus price target of C$133.33, suggesting a potential upside of 2.85%. Bank of Nova Scotia has a consensus price target of C$67.41, suggesting a potential upside of 2.27%. Given Bank of Montreal's stronger consensus rating and higher possible upside, research analysts plainly believe Bank of Montreal is more favorable than Bank of Nova Scotia.
Bank of Montreal pays an annual dividend of C$6.04 per share and has a dividend yield of 4.7%. Bank of Nova Scotia pays an annual dividend of C$4.24 per share and has a dividend yield of 6.4%. Bank of Montreal pays out 83.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank of Nova Scotia pays out 69.4% of its earnings in the form of a dividend. Bank of Nova Scotia is clearly the better dividend stock, given its higher yield and lower payout ratio.
54.3% of Bank of Montreal shares are held by institutional investors. Comparatively, 51.2% of Bank of Nova Scotia shares are held by institutional investors. 0.0% of Bank of Montreal shares are held by company insiders. Comparatively, 0.0% of Bank of Nova Scotia shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Bank of Nova Scotia has a net margin of 26.75% compared to Bank of Montreal's net margin of 17.71%. Bank of Nova Scotia's return on equity of 10.20% beat Bank of Montreal's return on equity.
Bank of Montreal received 162 more outperform votes than Bank of Nova Scotia when rated by MarketBeat users. However, 55.03% of users gave Bank of Nova Scotia an outperform vote while only 52.66% of users gave Bank of Montreal an outperform vote.
In the previous week, Bank of Montreal had 3 more articles in the media than Bank of Nova Scotia. MarketBeat recorded 10 mentions for Bank of Montreal and 7 mentions for Bank of Nova Scotia. Bank of Nova Scotia's average media sentiment score of 0.50 beat Bank of Montreal's score of 0.33 indicating that Bank of Nova Scotia is being referred to more favorably in the news media.
Bank of Nova Scotia has lower revenue, but higher earnings than Bank of Montreal. Bank of Nova Scotia 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.
Bank of Montreal has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Bank of Nova Scotia has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Summary
Bank of Montreal beats Bank of Nova Scotia on 11 of the 19 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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