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 superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability, media sentiment and valuation.

Does the media refer more to RY or BMO?

In the previous week, Bank of Montreal had 10 more articles in the media than Royal Bank of Canada. MarketBeat recorded 18 mentions for Bank of Montreal and 8 mentions for Royal Bank of Canada. Bank of Montreal's average media sentiment score of 0.48 beat Royal Bank of Canada's score of -0.26 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	1 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral
Bank of Montreal	2 Very Positive mention(s)	1 Positive mention(s)	12 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more volatility & risk, RY or BMO?

Royal Bank of Canada has a beta of 1.174198, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.24994, indicating that its share price is 25% more volatile than the S&P 500.

Do institutionals and insiders believe in RY or BMO?

29.5% of Royal Bank of Canada shares are held by institutional investors. Comparatively, 28.5% of Bank of Montreal shares are held by institutional investors. 0.0% of Bank of Montreal shares are held 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.

Which has better valuation and earnings, RY or BMO?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Bank of Canada	C$64.40B	4.37	C$16.24B	C$13.22	15.10
Bank of Montreal	C$35.16B	3.56	C$7.28B	C$11.41	15.33

Do analysts recommend RY or BMO?

Royal Bank of Canada presently has a consensus target price of C$206.00, indicating a potential upside of 3.19%. Bank of Montreal has a consensus target price of C$167.42, indicating a potential downside of 4.30%. Given Royal Bank of Canada's higher possible upside, research analysts clearly 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)	5 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.50
Bank of Montreal	0 Sell rating(s)	5 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.60

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%

Is RY or BMO a better dividend stock?

Royal Bank of Canada pays an annual dividend of C$5.92 per share and has a dividend yield of 3.0%. Bank of Montreal pays an annual dividend of C$6.36 per share and has a dividend yield of 3.6%. Royal Bank of Canada pays out 44.8% of its earnings in the form of a dividend. Bank of Montreal pays out 55.7% 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.

Summary

Royal Bank of Canada beats Bank of Montreal on 11 of the 19 factors compared between the two stocks.