Bank of Montreal (BMO)vsRoyal Bank of Canada (RY)
BMO
Bank of Montreal
$178.62
+1.90%
FINANCIAL SERVICES · Cap: $127.45B
RY
Royal Bank of Canada
$210.09
+1.76%
FINANCIAL SERVICES · Cap: $299.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 89% more annual revenue ($65.72B vs $34.68B). RY leads profitability with a 33.7% profit margin vs 28.1%. BMO appears more attractively valued with a PEG of 1.82. BMO earns a higher WallStSmart Score of 75/100 (B).
BMO
Strong Buy75
out of 100
Grade: B
RY
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 43.0%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
15.8% revenue growth
Earnings expanding 41.2% YoY
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 20.8B in free cash flow
16.1% revenue growth
Earnings expanding 27.5% YoY
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Distress zone — elevated risk
Expensive relative to growth rate
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 28.1% and operating margin at 43.0%. Revenue growth of 15.8% 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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : BMO
The primary concerns for BMO are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
BMO carries more volatility with a beta of 1.15 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
BMO scores higher overall (75/100 vs 67/100), backed by strong 28.1% margins and 15.8% revenue growth. 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.
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