Fairfax Financial (FFH) Competitors

Bank of Montreal (TSE:BMO) and Fairfax Financial (TSE:FFH) are both large-cap financial services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, media sentiment, community ranking, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

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

55.3% of Bank of Montreal shares are held by institutional investors. Comparatively, 38.0% of Fairfax Financial shares are held by institutional investors. 0.0% of Bank of Montreal shares are held by company insiders. Comparatively, 3.8% of Fairfax Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Do analysts prefer BMO or FFH?

Bank of Montreal presently has a consensus price target of C$145.62, indicating a potential downside of 1.34%. Fairfax Financial has a consensus price target of C$2,446.43, indicating a potential upside of 4.77%. Given Fairfax Financial's stronger consensus rating and higher probable upside, analysts plainly believe Fairfax Financial is more favorable than Bank of Montreal.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Montreal	0 Sell rating(s)	9 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.36
Fairfax Financial	0 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.75

Is BMO or FFH a better dividend stock?

Bank of Montreal pays an annual dividend of C$6.20 per share and has a dividend yield of 4.2%. Fairfax Financial pays an annual dividend of C$20.29 per share and has a dividend yield of 0.9%. Bank of Montreal pays out 61.2% of its earnings in the form of a dividend. Fairfax Financial pays out 7.8% 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.

Is BMO or FFH more profitable?

Fairfax Financial has a net margin of 13.90% compared to Bank of Montreal's net margin of 13.57%. Fairfax Financial's return on equity of 17.43% 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%
Fairfax Financial	13.90%	17.43%	4.27%

Does the media prefer BMO or FFH?

In the previous week, Bank of Montreal had 16 more articles in the media than Fairfax Financial. MarketBeat recorded 16 mentions for Bank of Montreal and 0 mentions for Fairfax Financial. Fairfax Financial's average media sentiment score of 0.80 beat Bank of Montreal's score of 0.03 indicating that Fairfax Financial is being referred to more favorably in the news media.

Company	Overall Sentiment
Bank of Montreal	Neutral
Fairfax Financial	Positive

Which has more risk & volatility, BMO or FFH?

Bank of Montreal has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Fairfax Financial has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Does the MarketBeat Community favor BMO or FFH?

Bank of Montreal received 280 more outperform votes than Fairfax Financial when rated by MarketBeat users. However, 62.52% of users gave Fairfax Financial an outperform vote while only 51.87% of users gave Bank of Montreal an outperform vote.

Company	Underperform	Outperform
Bank of Montreal	Outperform Votes 667 51.87%	Underperform Votes 619 48.13%
Fairfax Financial	Outperform Votes 387 62.52%	Underperform Votes 232 37.48%

Which has preferable valuation and earnings, BMO or FFH?

Bank of Montreal has higher revenue and earnings than Fairfax Financial. Fairfax Financial is trading at a lower price-to-earnings ratio than Bank of Montreal, 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	1.99	C$7.28B	C$10.13	14.57
Fairfax Financial	C$21.14B	1.77	C$2.94B	C$261.16	8.94

Summary

Bank of Montreal and Fairfax Financial tied by winning 10 of the 20 factors compared between the two stocks.