BAC vs. RY, HDB, MUFG, C, IBN, UBS, HSBC, TD, SMFG, and SAN
Should you be buying Bank of America stock or one of its competitors? The main competitors of Bank of America include Royal Bank of Canada (RY), HDFC Bank (HDB), Mitsubishi UFJ Financial Group (MUFG), Citigroup (C), ICICI Bank (IBN), UBS Group (UBS), HSBC (HSBC), Toronto-Dominion Bank (TD), Sumitomo Mitsui Financial Group (SMFG), and Banco Santander (SAN). These companies are all part of the "banking" industry.
Bank of America vs.
Royal Bank of Canada (NYSE:RY) and Bank of America (NYSE:BAC) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, media sentiment, earnings, community ranking, analyst recommendations and dividends.
Royal Bank of Canada has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Bank of America received 1265 more outperform votes than Royal Bank of Canada when rated by MarketBeat users. Likewise, 65.41% of users gave Bank of America an outperform vote while only 55.19% of users gave Royal Bank of Canada an outperform vote.
45.3% of Royal Bank of Canada shares are owned by institutional investors. Comparatively, 70.7% of Bank of America shares are owned by institutional investors. 0.3% of Bank of America shares are owned by 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 pays an annual dividend of $4.19 per share and has a dividend yield of 3.4%. Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.3%. Royal Bank of Canada pays out 50.7% of its earnings in the form of a dividend. Bank of America pays out 37.8% 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 increased its dividend for 14 consecutive years and Bank of America has increased its dividend for 11 consecutive years. Royal Bank of Canada is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Bank of America has higher revenue and earnings than Royal Bank of Canada. Royal Bank of Canada is trading at a lower price-to-earnings ratio than Bank of America, indicating that it is currently the more affordable of the two stocks.
Bank of America has a net margin of 12.48% compared to Royal Bank of Canada's net margin of 12.28%. Royal Bank of Canada's return on equity of 15.17% beat Bank of America's return on equity.
Royal Bank of Canada presently has a consensus target price of $142.50, indicating a potential upside of 17.00%. Bank of America has a consensus target price of $44.26, indicating a potential downside of 3.91%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, equities research analysts plainly believe Royal Bank of Canada is more favorable than Bank of America.
In the previous week, Bank of America had 54 more articles in the media than Royal Bank of Canada. MarketBeat recorded 72 mentions for Bank of America and 18 mentions for Royal Bank of Canada. Bank of America's average media sentiment score of 1.01 beat Royal Bank of Canada's score of 0.63 indicating that Bank of America is being referred to more favorably in the news media.
Summary
Bank of America beats Royal Bank of Canada on 13 of the 21 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
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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This page (NYSE:BAC) was last updated on 11/21/2024 by MarketBeat.com Staff
