BNS vs. ITUB, BK, DB, FITB, FCNCA, MTB, STT, NTRS, CFG, and WELL
Should you be buying Bank of Nova Scotia stock or one of its competitors? The main competitors of Bank of Nova Scotia include Itaú Unibanco (ITUB), Bank of New York Mellon (BK), Deutsche Bank Aktiengesellschaft (DB), Fifth Third Bancorp (FITB), First Citizens BancShares (FCNCA), M&T Bank (MTB), State Street (STT), Northern Trust (NTRS), Citizens Financial Group (CFG), and Welltower (WELL). These companies are all part of the "finance" sector.
Itaú Unibanco (NYSE:ITUB) and Bank of Nova Scotia (NYSE:BNS) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, media sentiment, valuation, institutional ownership, analyst recommendations, community ranking and earnings.
In the previous week, Bank of Nova Scotia had 15 more articles in the media than Itaú Unibanco. MarketBeat recorded 17 mentions for Bank of Nova Scotia and 2 mentions for Itaú Unibanco. Itaú Unibanco's average media sentiment score of 0.29 beat Bank of Nova Scotia's score of 0.21 indicating that Bank of Nova Scotia is being referred to more favorably in the news media.
49.1% of Bank of Nova Scotia shares are held by institutional investors. 0.6% of Itaú Unibanco shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Itaú Unibanco has a net margin of 11.09% compared to Itaú Unibanco's net margin of 10.71%. Bank of Nova Scotia's return on equity of 18.73% beat Itaú Unibanco's return on equity.
Bank of Nova Scotia received 319 more outperform votes than Itaú Unibanco when rated by MarketBeat users. However, 65.65% of users gave Itaú Unibanco an outperform vote while only 63.53% of users gave Bank of Nova Scotia an outperform vote.
Itaú Unibanco pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Bank of Nova Scotia pays an annual dividend of $3.14 per share and has a dividend yield of 6.6%. Itaú Unibanco pays out 5.4% of its earnings in the form of a dividend. Bank of Nova Scotia pays out 69.5% 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. Bank of Nova Scotia has raised its dividend for 2 consecutive years. Bank of Nova Scotia is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Itaú Unibanco has higher revenue and earnings than Bank of Nova Scotia. Itaú Unibanco is trading at a lower price-to-earnings ratio than Bank of Nova Scotia, indicating that it is currently the more affordable of the two stocks.
Itaú Unibanco presently has a consensus target price of $7.05, indicating a potential upside of 12.08%. Bank of Nova Scotia has a consensus target price of $68.00, indicating a potential upside of 42.89%. Given Itaú Unibanco's higher probable upside, analysts clearly believe Bank of Nova Scotia is more favorable than Itaú Unibanco.
Itaú Unibanco has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Bank of Nova Scotia has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
Summary
Itaú Unibanco and Bank of Nova Scotia tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BNS 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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