MCO vs. BMO, EQIX, USB, SAN, BBVA, APO, CME, ICE, SMFG, and AON
Should you be buying Moody's stock or one of its competitors? The main competitors of Moody's include Bank of Montreal (BMO), Equinix (EQIX), U.S. Bancorp (USB), Banco Santander (SAN), Banco Bilbao Vizcaya Argentaria (BBVA), Apollo Global Management (APO), CME Group (CME), Intercontinental Exchange (ICE), Sumitomo Mitsui Financial Group (SMFG), and AON (AON). These companies are all part of the "finance" sector.
Moody's (NYSE:MCO) and Bank of Montreal (NYSE:BMO) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, media sentiment, valuation, community ranking and institutional ownership.
92.1% of Moody's shares are held by institutional investors. Comparatively, 45.8% of Bank of Montreal shares are held by institutional investors. 0.1% of Moody's shares are held by company insiders. Comparatively, 1.0% of Bank of Montreal 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.
Moody's has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
Bank of Montreal has higher revenue and earnings than Moody's. Bank of Montreal is trading at a lower price-to-earnings ratio than Moody's, indicating that it is currently the more affordable of the two stocks.
In the previous week, Moody's had 21 more articles in the media than Bank of Montreal. MarketBeat recorded 31 mentions for Moody's and 10 mentions for Bank of Montreal. Bank of Montreal's average media sentiment score of 0.68 beat Moody's' score of 0.52 indicating that Bank of Montreal is being referred to more favorably in the news media.
Bank of Montreal received 20 more outperform votes than Moody's when rated by MarketBeat users. However, 59.59% of users gave Moody's an outperform vote while only 57.19% of users gave Bank of Montreal an outperform vote.
Moody's has a net margin of 27.16% compared to Bank of Montreal's net margin of 7.40%. Moody's' return on equity of 55.23% beat Bank of Montreal's return on equity.
Moody's pays an annual dividend of $3.40 per share and has a dividend yield of 0.9%. Bank of Montreal pays an annual dividend of $3.25 per share and has a dividend yield of 3.6%. Moody's pays out 38.9% of its earnings in the form of a dividend. Bank of Montreal pays out 62.0% 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.
Moody's presently has a consensus target price of $397.75, suggesting a potential upside of 6.18%. Bank of Montreal has a consensus target price of $131.00, suggesting a potential upside of 43.97%. Given Bank of Montreal's stronger consensus rating and higher possible upside, analysts clearly believe Bank of Montreal is more favorable than Moody's.
Summary
Moody's beats Bank of Montreal on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MCO 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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