BMO vs. RY, MUFG, HDB, IBN, TD, 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), ICICI Bank (IBN), Toronto-Dominion Bank (TD), 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.
Royal Bank of Canada (NYSE:RY) and Bank of Montreal (NYSE:BMO) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, media sentiment, institutional ownership, community ranking, profitability, earnings and risk.
Royal Bank of Canada has a net margin of 12.12% compared to Royal Bank of Canada's net margin of 8.25%. Bank of Montreal's return on equity of 14.87% beat Royal Bank of Canada's return on equity.
45.3% of Royal Bank of Canada shares are owned by institutional investors. Comparatively, 45.8% of Bank of Montreal shares are owned by institutional investors. 1.0% of Bank of Montreal shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Royal Bank of Canada received 167 more outperform votes than Bank of Montreal when rated by MarketBeat users. However, 57.01% of users gave Bank of Montreal an outperform vote while only 55.54% of users gave Royal Bank of Canada an outperform vote.
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 an annual dividend of $4.47 per share and has a dividend yield of 5.1%. Royal Bank of Canada pays out 50.6% of its earnings in the form of a dividend. Bank of Montreal pays out 74.3% 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.
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.
Royal Bank of Canada has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.
In the previous week, Bank of Montreal had 1 more articles in the media than Royal Bank of Canada. MarketBeat recorded 13 mentions for Bank of Montreal and 12 mentions for Royal Bank of Canada. Bank of Montreal's average media sentiment score of 0.78 beat Royal Bank of Canada's score of 0.56 indicating that Royal Bank of Canada is being referred to more favorably in the media.
Royal Bank of Canada presently has a consensus target price of $133.25, suggesting a potential upside of 20.40%. Bank of Montreal has a consensus target price of $127.50, suggesting a potential upside of 46.00%. Given Royal Bank of Canada's higher probable upside, analysts plainly believe Bank of Montreal is more favorable than Royal Bank of Canada.
Summary
Royal Bank of Canada beats Bank of Montreal on 14 of the 22 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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