Bank of Nova Scotia (BNS) Competitors

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

Is BNS or RY 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
Bank of Nova Scotia	17.68%	9.64%	0.55%
Royal Bank of Canada	28.23%	13.27%	0.80%

Does the media favor BNS or RY?

In the previous week, Royal Bank of Canada had 1 more articles in the media than Bank of Nova Scotia. MarketBeat recorded 2 mentions for Royal Bank of Canada and 1 mentions for Bank of Nova Scotia. Bank of Nova Scotia's average media sentiment score of 0.95 beat Royal Bank of Canada's score of 0.22 indicating that Bank of Nova Scotia is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Bank of Nova Scotia	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
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)	Neutral

Which has better earnings and valuation, BNS or RY?

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
Bank of Nova Scotia	C$36.00B	3.11	C$7.73B	C$5.23	17.18
Royal Bank of Canada	C$64.40B	4.52	C$16.24B	C$13.22	15.60

Which has more risk & volatility, BNS or RY?

Bank of Nova Scotia has a beta of 1.29545, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 1.241893, meaning that its share price is 24% more volatile than the S&P 500.

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

25.3% of Bank of Nova Scotia shares are held by institutional investors. Comparatively, 29.7% of Royal Bank of Canada 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Is BNS or RY a better dividend stock?

Bank of Nova Scotia pays an annual dividend of C$4.28 per share and has a dividend yield of 4.8%. Royal Bank of Canada pays an annual dividend of C$5.92 per share and has a dividend yield of 2.9%. 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. Royal Bank of Canada pays out 44.8% of its earnings in the form of a dividend.

Do analysts prefer BNS or RY?

Bank of Nova Scotia presently has a consensus target price of C$85.85, suggesting a potential downside of 4.48%. Royal Bank of Canada has a consensus target price of C$206.62, suggesting a potential upside of 0.20%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, analysts plainly 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
Bank of Nova Scotia	0 Sell rating(s)	8 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.46
Royal Bank of Canada	0 Sell rating(s)	5 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	2.64

Summary

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