Swedbank (OTCMKTS:SWDBY) and Bank of Montreal (NYSE:BMO) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Swedbank pays an annual dividend of $1.27 per share and has a dividend yield of 8.3%. Bank of Montreal pays an annual dividend of $3.12 per share and has a dividend yield of 4.2%. Bank of Montreal pays out 44.6% of its earnings in the form of a dividend.
Swedbank has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Earnings and Valuation
This table compares Swedbank and Bank of Montreal’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Swedbank||$6.23 billion||2.74||$2.44 billion||N/A||N/A|
|Bank of Montreal||$25.01 billion||1.91||$4.24 billion||$6.99||10.67|
Bank of Montreal has higher revenue and earnings than Swedbank.
Insider & Institutional Ownership
0.1% of Swedbank shares are owned by institutional investors. Comparatively, 41.1% of Bank of Montreal shares are owned by institutional investors. 1.0% of Bank of Montreal shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Swedbank and Bank of Montreal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank of Montreal||16.48%||14.14%||0.76%|
This is a summary of current recommendations for Swedbank and Bank of Montreal, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank of Montreal||1||9||1||0||2.00|
Bank of Montreal has a consensus price target of $101.00, indicating a potential upside of 35.46%. Given Bank of Montreal’s stronger consensus rating and higher possible upside, analysts clearly believe Bank of Montreal is more favorable than Swedbank.
Bank of Montreal beats Swedbank on 9 of the 15 factors compared between the two stocks.
Swedbank AB (publ) provides various banking products and services to private, corporate, and organizational customers. The company operates through Swedish Banking, Baltic Banking, and Large Corporates & Institutions segments. It offers deposit and lending products; guarantees; non-life insurance products; brokerage and other securities; real estate brokerage; and asset management, financing, and life insurance and pension services. The company also offers investments and trading services, including equity, currency, fixed income, and equity trading services, as well as structured products; advisory and investment banking products and services, such as corporate financing, debt capital market, and loans and syndication services; and transaction banking services, such as cash management, trade finance, securities, commercial payments, account, and clearing and settlement services. In addition, it provides private banking products and services, such as saving accounts, credit and debit cards, mortgage finance, and investment advice, as well as trades in derivatives; and telephone, Internet, and mobile banking services. The company has 186 branches in Sweden, 33 branches in Estonia, 33 in Latvia, and 59 in Lithuania. It also operates in Norway, Finland, Denmark, Luxembourg, China, the United States, and South Africa. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.
About Bank of Montreal
Bank of Montreal provides diversified financial services primarily in North America. It operates through three groups: Personal and Commercial Banking, Wealth Management, and BMO Capital Markets. The company's personal banking products and services include checking and savings accounts, credit cards, mortgages, and financial and investment advice services; and commercial banking products and services comprise business deposit accounts, commercial credit cards, business loans and commercial mortgages, cash management solutions, foreign exchange, and specialized banking programs for small business and commercial banking customers, as well as wealth management products and services, such as insurance products. It also offers equity and debt underwriting, corporate lending and project financing, mergers and acquisitions advisory services, securitization, treasury management, risk management, equity and fixed income research, and institutional sales and trading services to corporate, institutional, and government clients. In addition, the company offers trade finance, investment management, online investing, trust and estate services, tax planning, and investment solutions to institutional investors, as well as industry-leading research, sales, and trading services. It operates approximately 1,500 branches in Canada and the United States, as well as offices in 27 jurisdictions. The company was founded in 1817 and is headquartered in Montreal, Canada.
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