Bank of Montreal (BMO)vsRoyal Bank of Canada (RY)
BMO
Bank of Montreal
$174.88
+0.69%
FINANCIAL SERVICES · Cap: $121.92B
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 88% more annual revenue ($67.15B vs $35.67B). RY leads profitability with a 33.9% profit margin vs 25.7%. BMO appears more attractively valued with a PEG of 1.86. BMO earns a higher WallStSmart Score of 65/100 (C+).
BMO
Buy65
out of 100
Grade: C+
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 30.5%
Large-cap with strong market position
Keeps 26 of every $100 in revenue as profit
Reasonable price relative to book value
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Earnings declined 24.2%
Negative free cash flow — burning cash
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : BMO
The strongest argument for BMO centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 25.7% and operating margin at 30.5%. Revenue growth of 12.0% demonstrates continued momentum.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.
Bear Case : BMO
The primary concerns for BMO are PEG Ratio, Debt/Equity, EPS Growth. Debt-to-equity of 1.93 is elevated, increasing financial risk.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Key Dynamics to Monitor
BMO carries more volatility with a beta of 1.13 — expect wider price swings.
BMO is growing revenue faster at 12.0% — sustainability is the question.
BMO generates stronger free cash flow (-13.6B), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BMO scores higher overall (65/100 vs 63/100), backed by strong 25.7% margins and 12.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Bank of Montreal
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Bank of Montreal offers diversified financial services primarily in North America. The company is headquartered in Montreal, Canada.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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