BMO vs. RY, TD, BNS, FFH, KEY, BNC, BLX, SII, HUT, and VBNK
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), Toronto-Dominion Bank (TD), Bank of Nova Scotia (BNS), Fairfax Financial (FFH), Keyera (KEY), Purpose Canadian Financial Income Fund Series ETF (BNC), Boralex (BLX), Sprott (SII), Hut 8 (HUT), and VersaBank (VBNK). These companies are all part of the "banking" industry.
Bank of Montreal vs. Its 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 investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation, profitability and media sentiment.
Royal Bank of Canada pays an annual dividend of C$5.68 per share and has a dividend yield of 3.2%. 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 out 49.5% of its earnings in the form of a dividend. Bank of Montreal pays out 61.2% 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.
52.5% of Royal Bank of Canada shares are owned by institutional investors. Comparatively, 55.3% 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, endowments and hedge funds believe a stock is poised for long-term growth.
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.
Royal Bank of Canada presently has a consensus target price of C$184.54, suggesting a potential upside of 3.16%. Bank of Montreal has a consensus target price of C$145.69, suggesting a potential downside of 4.97%. 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.
In the previous week, Bank of Montreal had 4 more articles in the media than Royal Bank of Canada. MarketBeat recorded 7 mentions for Bank of Montreal and 3 mentions for Royal Bank of Canada. Bank of Montreal's average media sentiment score of 0.27 beat Royal Bank of Canada's score of 0.27 indicating that Bank of Montreal is being referred to more favorably in the news media.
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.
Royal Bank of Canada has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Summary
Royal Bank of Canada beats Bank of Montreal on 13 of the 19 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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.
Media Sentiment Over Time
This chart shows the average media sentiment of TSE 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.
Bank of Montreal Competitors List
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This page (TSE:BMO) was last updated on 7/3/2025 by MarketBeat.com Staff
