Bank of Montreal (BMO) Competitors

Royal Bank of Canada (TSE:RY) and Bank of Montreal (TSE:BMO) are both large-cap financial services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, media sentiment, risk, dividends, analyst recommendations, earnings, profitability and community ranking.

Do analysts prefer RY or BMO?

Royal Bank of Canada presently has a consensus price target of C$181.67, suggesting a potential upside of 10.61%. Bank of Montreal has a consensus price target of C$149.00, suggesting a potential upside of 7.26%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, research analysts plainly believe Royal Bank of Canada is more favorable than Bank of Montreal.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Bank of Canada	0 Sell rating(s)	2 Hold rating(s)	5 Buy rating(s)	3 Strong Buy rating(s)	3.10
Bank of Montreal	0 Sell rating(s)	6 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	2.67

Which has more volatility and risk, RY or BMO?

Royal Bank of Canada has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Which has preferable earnings and valuation, RY or BMO?

Royal Bank of Canada has higher revenue and earnings than Bank of Montreal. Bank of Montreal is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Bank of Canada	C$57.52B	4.04	C$16.24B	C$11.48	14.31
Bank of Montreal	C$53.67B	1.87	C$7.28B	C$10.13	13.71

Does the MarketBeat Community prefer RY or BMO?

Royal Bank of Canada received 90 more outperform votes than Bank of Montreal when rated by MarketBeat users. Likewise, 58.22% of users gave Royal Bank of Canada an outperform vote while only 52.12% of users gave Bank of Montreal an outperform vote.

Company	Underperform	Outperform
Royal Bank of Canada	Outperform Votes 754 58.22%	Underperform Votes 541 41.78%
Bank of Montreal	Outperform Votes 664 52.12%	Underperform Votes 610 47.88%

Do institutionals and insiders have more ownership in RY or BMO?

52.5% of Royal Bank of Canada shares are owned by institutional investors. Comparatively, 55.3% of Bank of Montreal shares are owned by institutional investors. 0.0% of Bank of Montreal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Does the media favor RY or BMO?

In the previous week, Royal Bank of Canada had 5 more articles in the media than Bank of Montreal. MarketBeat recorded 8 mentions for Royal Bank of Canada and 3 mentions for Bank of Montreal. Bank of Montreal's average media sentiment score of 0.52 beat Royal Bank of Canada's score of 0.28 indicating that Bank of Montreal is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Royal Bank of Canada	3 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Bank of Montreal	1 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is RY or BMO a better dividend stock?

Royal Bank of Canada pays an annual dividend of C$5.68 per share and has a dividend yield of 3.5%. Bank of Montreal pays an annual dividend of C$6.20 per share and has a dividend yield of 4.5%. Royal Bank of Canada pays out 49.5% of its earnings in the form of a dividend. Bank of Montreal pays out 61.2% 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.

Is RY or BMO more profitable?

Royal Bank of Canada has a net margin of 28.23% compared to Bank of Montreal's net margin of 13.57%. Royal Bank of Canada's return on equity of 13.27% beat Bank of Montreal's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Royal Bank of Canada	28.23%	13.27%	0.80%
Bank of Montreal	13.57%	9.04%	0.50%

Summary

Royal Bank of Canada beats Bank of Montreal on 15 of the 21 factors compared between the two stocks.