Fairfax Financial (FFH) Competitors

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

Is FFH or BMO 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
Fairfax Financial	13.90%	17.43%	4.27%
Bank of Montreal	13.57%	9.04%	0.50%

Which has stronger earnings & valuation, FFH or BMO?

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
Fairfax Financial	C$21.14B	1.81	C$2.94B	C$261.16	9.15
Bank of Montreal	C$53.67B	2.14	C$7.28B	C$10.13	15.62

Do insiders and institutionals hold more shares of FFH or BMO?

38.0% of Fairfax Financial shares are held by institutional investors. Comparatively, 55.3% of Bank of Montreal shares are held by institutional investors. 3.8% of Fairfax Financial shares are held by company insiders. Comparatively, 0.0% of Bank of Montreal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Which has more volatility & risk, FFH or BMO?

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

Is FFH or BMO a better dividend stock?

Fairfax Financial pays an annual dividend of C$20.29 per share and has a dividend yield of 0.8%. Bank of Montreal pays an annual dividend of C$6.20 per share and has a dividend yield of 3.9%. Fairfax Financial pays out 7.8% 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.

Do analysts recommend FFH or BMO?

Fairfax Financial presently has a consensus price target of C$2,742.86, suggesting a potential upside of 14.84%. Bank of Montreal has a consensus price target of C$151.54, suggesting a potential downside of 4.22%. Given Fairfax Financial's stronger consensus rating and higher probable upside, equities analysts plainly believe Fairfax Financial is more favorable than Bank of Montreal.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fairfax Financial	0 Sell rating(s)	1 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.83
Bank of Montreal	1 Sell rating(s)	7 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.25

Does the media prefer FFH or BMO?

In the previous week, Bank of Montreal had 10 more articles in the media than Fairfax Financial. MarketBeat recorded 10 mentions for Bank of Montreal and 0 mentions for Fairfax Financial. Bank of Montreal's average media sentiment score of 0.64 beat Fairfax Financial's score of 0.00 indicating that Bank of Montreal is being referred to more favorably in the news media.

Company	Overall Sentiment
Fairfax Financial	Neutral
Bank of Montreal	Positive

Summary

Fairfax Financial and Bank of Montreal tied by winning 9 of the 18 factors compared between the two stocks.