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

Does the media refer more to RY or BNS?

In the previous week, Royal Bank of Canada and Royal Bank of Canada both had 3 articles in the media. Royal Bank of Canada's average media sentiment score of 0.89 beat Bank of Nova Scotia's score of 0.61 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	0 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Bank of Nova Scotia	1 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is RY or BNS a better dividend stock?

Royal Bank of Canada pays an annual dividend of C$5.68 per share and has a dividend yield of 3.2%. Bank of Nova Scotia pays an annual dividend of C$4.24 per share and has a dividend yield of 5.7%. Royal Bank of Canada pays out 49.5% of its earnings in the form of a dividend. Bank of Nova Scotia pays out 67.0% 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 risk and volatility, RY or BNS?

Royal Bank of Canada has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Bank of Nova Scotia has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Which has preferable earnings and valuation, RY or BNS?

Royal Bank of Canada has higher revenue and earnings than Bank of Nova Scotia. Bank of Nova Scotia 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$57.52B	4.42	C$16.24B	C$11.48	15.64
Bank of Nova Scotia	C$43.73B	2.10	C$7.73B	C$6.33	11.84

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%

Do analysts prefer RY or BNS?

Royal Bank of Canada currently has a consensus price target of C$184.54, indicating a potential upside of 2.79%. Bank of Nova Scotia has a consensus price target of C$77.31, indicating a potential upside of 3.13%. Given Bank of Nova Scotia's higher possible upside, analysts plainly believe Bank of Nova Scotia is more favorable than Royal Bank of Canada.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Bank of Canada	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	3 Strong Buy rating(s)	3.09
Bank of Nova Scotia	0 Sell rating(s)	9 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.43

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

52.5% of Royal Bank of Canada shares are held by institutional investors. Comparatively, 51.1% of Bank of Nova Scotia shares are held by institutional investors. 0.0% of Bank of Nova Scotia shares are held 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.

Summary

Royal Bank of Canada beats Bank of Nova Scotia on 14 of the 18 factors compared between the two stocks.