Bank of Montreal (BMO) Competitors

Bank of Montreal (TSE:BMO) and Royal Bank of Canada (TSE:RY) are both large-cap financial services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, media sentiment, institutional ownership, profitability, earnings and risk.

Which has more volatility and risk, BMO or RY?

Bank of Montreal has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Which has higher valuation and earnings, BMO or RY?

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
Bank of Montreal	C$53.67B	2.11	C$7.28B	C$10.13	15.45
Royal Bank of Canada	C$57.52B	4.66	C$16.24B	C$11.48	16.50

Is BMO or RY 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
Bank of Montreal	13.57%	9.04%	0.50%
Royal Bank of Canada	28.23%	13.27%	0.80%

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

55.3% of Bank of Montreal shares are owned by institutional investors. Comparatively, 52.5% of Royal Bank of Canada shares are owned by institutional investors. 0.0% of Bank of Montreal shares are owned 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.

Is BMO or RY a better dividend stock?

Bank of Montreal pays an annual dividend of C$6.20 per share and has a dividend yield of 4.0%. Royal Bank of Canada pays an annual dividend of C$5.68 per share and has a dividend yield of 3.0%. Bank of Montreal pays out 61.2% of its earnings in the form of a dividend. Royal Bank of Canada pays out 49.5% 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.

Does the media refer more to BMO or RY?

In the previous week, Bank of Montreal had 6 more articles in the media than Royal Bank of Canada. MarketBeat recorded 27 mentions for Bank of Montreal and 21 mentions for Royal Bank of Canada. Royal Bank of Canada's average media sentiment score of 0.68 beat Bank of Montreal's score of 0.65 indicating that Royal Bank of Canada is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Bank of Montreal	4 Very Positive mention(s)	5 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Royal Bank of Canada	5 Very Positive mention(s)	4 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend BMO or RY?

Bank of Montreal presently has a consensus price target of C$151.54, suggesting a potential downside of 3.18%. Royal Bank of Canada has a consensus price target of C$190.54, suggesting a potential upside of 0.60%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, 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
Bank of Montreal	1 Sell rating(s)	7 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.25
Royal Bank of Canada	0 Sell rating(s)	3 Hold rating(s)	4 Buy rating(s)	3 Strong Buy rating(s)	3.00

Summary

Royal Bank of Canada beats Bank of Montreal on 13 of the 18 factors compared between the two stocks.