Bank of Montreal (NYSE:BMO) versus DNB Bank ASA (OTCMKTS:DNBBY) financial analysis

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Bank of Montreal (NYSE:BMO – Get Rating) and DNB Bank ASA (OTCMKTS:DNBBY – Get Rating) are both large-cap financials, but which is the better stock? We’ll compare the two companies based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership, and valuation.

profitability

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 investment
Bank of Montreal 33.03% 17.05% 0.92%
DNB Bank ASA 39.63% 10.10% 0.82%

Insider and Institutional Property

39.5% of Bank of Montreal’s shares are held by institutional investors. In comparison, 0.1% of the shares in DNB Bank ASA are held by institutional investors. 1.0% of Bank of Montreal stock is held by corporate insiders. Strong institutional ownership is an indication that large money managers, endowments, and hedge funds believe a stock is poised for long-term growth.

dividends

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 out 29.4% of its profits in the form of a dividend. DNB Bank ASA pays out 89.0% of its earnings in the form of a dividend, indicating that it may not have sufficient earnings to cover its future dividend payment. The Bank of Montreal has increased its dividend for 1 year in a row.

Risk & 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% is more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of the current ratings and recommendations for Bank of Montreal and DNB Bank ASA as provided by MarketBeat.com.

sell reviews keep ratings Buy reviews Strong buy recommendations rating score
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 price target of $157.58, indicating a potential upside of 71.19%. DNB Bank ASA has a consensus price target of $201.67, indicating a potential upside of 1,032.96%. Given DNB Bank ASA’s more likely upside potential, analysts clearly believe DNB Bank ASA is cheaper than Bank of Montreal.

profit and rating

This table compares the revenue, earnings per share, and valuation of Bank of Montreal and DNB Bank ASA.

gross receipts price/sales ratio net income 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 revenues and profits than DNB Bank ASA. Bank of Montreal is trading at a lower price-to-earnings multiple than DNB Bank ASA, suggesting that it is currently the cheaper of the two stocks.

summary

Bank of Montreal beats DNB Bank ASA on 11 of the 17 factors compared between the two stocks.

About the Bank of Montreal

(received rating)

The 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 and investment advisory services; and commercial banking products and services include business deposit accounts, commercial credit cards, business credit and commercial mortgages, cash management solutions, foreign exchange, specialty banking programs, treasury and payments solutions, and risk management products for small business and commercial banking customers. It also offers investment and wealth advisory services; digital investment services; financial services and solutions; and investment management, trusteeship and custodial services. The company also offers life insurance, accident and health insurance, and annuity products; credit and travel insurance for bank customers; and reinsurance solutions. It also provides debt and equity raising client services, as well as loan origination and syndication and treasury management; strategic advice on mergers and acquisitions, restructurings and recapitalizations as well as valuation and fairness opinions; and trade finance, risk mitigation and other operational services. In addition, the company provides research and access to institutional, corporate and retail client markets; trading solutions that include debt, foreign exchange, interest rates, credit, stocks, securitizations and commodities; new product development and origination services and risk management advice and services to hedge against volatility; and financing and liquidity management services for its clients. The company operates through approximately 900 bank branches and 3,300 ATMs in Canada and the United States. The Bank of Montreal was founded in 1817 and is headquartered in Montreal, Canada.

About DNB Bank ASA

(received rating)

DNB Bank ASA logoDNB Bank ASA offers financial services to private and corporate customers in Norway and internationally. The Company offers personal banking products and services including savings and investment products; loans such as mortgage loans and auto and consumer loans; pet, home and property, travel, personal and vehicle insurance products; retirement products; foreign exchange and treasury transactions; and internet and mobile banking services and cards. It also provides corporate banking products and services, which include savings and investment products consisting of savings accounts, fixed income deposits, exchange-traded products, bonds and commercial paper, wealth management and stock services; Financing such as installment loans, overdrafts, bank guarantees, leasing, factoring and trade and export financing; transaction banking services; research, commodities, bonds and commercial paper, corporate finance, debt capital markets, equities, foreign exchange and interest rates, and investment services; and Internet services, including online stock trading, online currency trading, e-confirmation, stock execution, and investor and margin accounts, and pension services. In addition, the company provides investment banking services such as mergers and acquisitions and equity and debt capital markets services; Forex, interest rates, equities, commodities, fixed income, research, private equity and investment services; and corporate banking services. In addition, it offers private banking services. The Company offers its products and services in various sectors including Energy; financial institutions; health care; manufacturing; packaging and forest products; Seafood; shipping, offshore and logistics; and Telecom, Media and Technology. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.



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