Bank of Nova Scotia (BNS) Competitors

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

Do institutionals and insiders hold more shares of RY or BNS?

29.5% of Royal Bank of Canada shares are owned by institutional investors. Comparatively, 25.2% of Bank of Nova Scotia shares are owned by institutional investors. 0.0% of Bank of Nova Scotia shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Does the media prefer RY or BNS?

In the previous week, Royal Bank of Canada had 4 more articles in the media than Bank of Nova Scotia. MarketBeat recorded 8 mentions for Royal Bank of Canada and 4 mentions for Bank of Nova Scotia. Bank of Nova Scotia's average media sentiment score of 0.18 beat Royal Bank of Canada's score of -0.26 indicating that Bank of Nova Scotia 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 Nova Scotia	0 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more risk & volatility, RY or BNS?

Royal Bank of Canada has a beta of 1.174198, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Bank of Nova Scotia has a beta of 1.345808, suggesting that its stock price is 35% more volatile than the S&P 500.

Do analysts rate RY or BNS?

Royal Bank of Canada currently has a consensus price target of C$206.00, suggesting a potential upside of 3.19%. Bank of Nova Scotia has a consensus price target of C$85.85, suggesting a potential downside of 2.16%. 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 Nova Scotia.

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 Nova Scotia	0 Sell rating(s)	8 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.46

Is RY or BNS more profitable?

Royal Bank of Canada has a net margin of 28.23% compared to Bank of Nova Scotia's net margin of 17.68%. Royal Bank of Canada's return on equity of 13.27% beat Bank of Nova Scotia'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 Nova Scotia	17.68%	9.64%	0.55%

Is RY or BNS 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 Nova Scotia pays an annual dividend of C$4.28 per share and has a dividend yield of 4.9%. Royal Bank of Canada pays out 44.8% of its earnings in the form of a dividend. Bank of Nova Scotia pays out 81.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Which has better valuation and earnings, RY or BNS?

Royal Bank of Canada has higher revenue and earnings than Bank of Nova Scotia. Royal Bank of Canada is trading at a lower price-to-earnings ratio than Bank of Nova Scotia, 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 Nova Scotia	C$36.00B	3.03	C$7.73B	C$5.23	16.78

Summary

Royal Bank of Canada beats Bank of Nova Scotia on 13 of the 19 factors compared between the two stocks.