Bank of Montreal (NYSE:BMO) versus DNB Bank ASA (OTCMKTS:DNBBY) Financial Analysis
Bank of Montreal (New York Stock Exchange: BMO – Get a rating) and DNB Bank ASA (OTCMKTS: DNBBY – Get a rating) are both large-cap financial companies, but which is the better stock? We’ll compare the two companies based on their risk strength, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
This table compares the net margins, return on equity and return on assets of Bank of Montreal and DNB Bank ASA.
|Net margins||Return on equity||return on assets|
|Bank of Montreal||33.03%||17.05%||0.92%|
|DNB Bank ASA||39.63%||10.10%||0.82%|
Insider and Institutional Ownership
39.5% of Bank of Montreal shares are held by institutional investors. By comparison, 0.1% of DNB Bank ASA shares are held by institutional investors. 1.0% of Bank of Montreal shares are held by insiders of the company. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a stock is poised for long-term growth.
Bank of Montreal pays an annual dividend of $4.25 per share and has a dividend yield of 4.6%. DNB Bank ASA pays an annual dividend of $1.62 per share and has a dividend yield of 9.1%. The Bank of Montreal pays 29.4% of its profits in the form of dividends. DNB Bank ASA pays out 89.0% of its profits in the form of a dividend, suggesting that it may not have sufficient profits to cover its dividend payment in the future. The Bank of Montreal has increased its dividend for 1 consecutive year.
Risk and Volatility
Bank of Montreal has a beta of 1.2, suggesting its stock price is 20% more volatile than the S&P 500. In comparison, DNB Bank ASA has a beta of 1.35, suggesting its stock price is 35% more volatile than the S&P 500.
This is a breakdown of the current ratings and recommendations for Bank of Montreal and DNB Bank ASA, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Bank of Montreal||0||2||9||0||2.82|
|DNB Bank ASA||1||4||5||0||2.40|
Bank of Montreal currently has a consensus target price of $157.58, indicating 71.19% upside potential. DNB Bank ASA has a consensus target price of $201.67, indicating a potential upside of 1,032.96%. Given the likely higher upside of DNB Bank ASA, analysts clearly believe that DNB Bank ASA is more favorable than Bank of Montreal.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Bank of Montreal and DNB Bank ASA.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Bank of Montreal||$26.06 billion||2.38||$6.17 billion||$14.47||6.36|
|DNB Bank ASA||$7.12 billion||3.87||$2.95 billion||$1.82||9.78|
Bank of Montreal has higher revenue and profit than DNB Bank ASA. Bank of Montreal is trading at a lower price-to-earnings ratio than DNB Bank ASA, indicating that it is currently the more affordable of the two stocks.
Bank of Montreal beats DNB Bank ASA on 11 out of 17 factors compared between the two stocks.
About Bank of Montreal
Bank of Montreal offers diversified financial services primarily in North America. The Company’s personal banking products and services include checking and savings accounts, credit cards, mortgages, and financial advisory and investment services; and commercial banking products and services include business deposit accounts, commercial credit cards, business loans and commercial mortgages, cash management solutions, foreign exchange, specialty banking programs, treasury solutions and payment and risk management products for small business and commercial bank customers. It also offers investment advice and wealth management services; digital investment services; financial services and solutions; and investment management, and trust and custodial services. In addition, the Company offers life insurance, accident and sickness insurance and annuity products; credit insurance and travel insurance for bank customers; and reinsurance solutions. In addition, it provides clients with capital and equity raising services, as well as loan origination and syndication and cash management; strategic advice on mergers and acquisitions, restructurings and recapitalizations, as well as valuation and equity opinions; and trade finance, risk mitigation and other operating services. Additionally, the Company provides research and market access services for institutional, commercial and retail clients; trading solutions that include debt, foreign exchange, interest rates, credit, equities, securitization and commodities; new product development and origination services, as well as advice and risk management services to hedge against fluctuations; and financing and liquidity management services to its customers. It operates through approximately 900 bank branches and 3,300 automated banking machines in Canada and the United States. Bank of Montreal was founded in 1817 and is headquartered in Montreal, Canada.
About DNB Bank ASA
DNB Bank ASA provides financial services to individuals and businesses in Norway and internationally. The Company offers personal banking products and services, including savings and investment products; loans, such as home loans and automobile and consumer loans; pet, home and property, travel and personal insurance products, as well as vehicle insurance products; retirement savings products; foreign exchange and treasury activities; and internet and mobile banking, as well as cards. It also provides corporate banking products and services comprising savings and investment products consisting of savings accounts, fixed rate deposits, exchange-traded products, bonds and commercial paper, management equity assets and services; financing, such as installment loans, overdraft facilities, bank guarantees, leasing, factoring, and trade and export finance services; transaction banking services; research, commodities, bonds and commercial paper, corporate finance, debt capital market, equities, foreign exchange and interest rates, and securities services; and Internet services, including online stock trading, online currency trading, electronic confirmation, stock execution, and investor and margin accounts, and retirement services. In addition, the Company provides investment banking services, such as mergers and acquisitions, and equity and debt capital markets services; foreign exchange, interest rate, equity, commodity, fixed income, research, private equity and securities services; and business banking. In addition, it offers private banking services. The company offers its products and services to various sectors, including energy; financial institutions; Health care; manufacturing; packaging and forest products; Seafood; shipping, offshore and logistics; and telecommunications, media and technology. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.
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