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

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

29.7% of Royal Bank of Canada shares are owned by institutional investors. Comparatively, 28.3% 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Which has higher valuation and earnings, 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$64.40B	4.53	C$16.24B	C$13.22	15.65
Bank of Montreal	C$35.16B	3.67	C$7.28B	C$11.41	15.53

Does the media favor RY or BMO?

In the previous week, Bank of Montreal had 2 more articles in the media than Royal Bank of Canada. MarketBeat recorded 7 mentions for Bank of Montreal and 5 mentions for Royal Bank of Canada. Royal Bank of Canada's average media sentiment score of 0.55 beat Bank of Montreal's score of 0.19 indicating that Royal Bank of Canada is being referred to more favorably in the 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)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Bank of Montreal	0 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

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 2.9%. 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.

Which has more volatility & risk, RY or BMO?

Royal Bank of Canada has a beta of 1.241893, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.349621, suggesting that its stock price is 35% more volatile than the S&P 500.

Do analysts recommend RY or BMO?

Royal Bank of Canada presently has a consensus price target of C$206.62, indicating a potential downside of 0.13%. Bank of Montreal has a consensus price target of C$167.83, indicating a potential downside of 5.30%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, equities 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)	1 Strong Buy rating(s)	2.64
Bank of Montreal	0 Sell rating(s)	6 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.50

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 14 of the 18 factors compared between the two stocks.