Bank of Montreal (BMO)vsRoyal Bank of Canada (RY)
BMO
Bank of Montreal
$173.83
+0.99%
FINANCIAL SERVICES · Cap: $119.65B
RY
Royal Bank of Canada
$204.77
+0.86%
FINANCIAL SERVICES · Cap: $281.07B
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 1.52. RY earns a higher WallStSmart Score of 68/100 (B-).
BMO
Strong Buy67
out of 100
Grade: B-
RY
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 30.5%
Generating 26.2B in free cash flow
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%
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Earnings declined 24.2%
Distress zone — elevated risk
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, Free Cash Flow, Market Cap. 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 1.12 — expect wider price swings.
BMO is growing revenue faster at 12.0% — sustainability is the question.
BMO generates stronger free cash flow (26.2B), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RY scores higher overall (68/100 vs 67/100), backed by strong 33.9% margins. Both earn "Strong Buy" and "Strong 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.
Compare with Other BANKS - DIVERSIFIED Stocks
Want to dig deeper into these stocks?