ST BK CORP/SH SH (OTCMKTS:SBAZ) and Bank of Montreal (NYSE:BMO) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
ST BK CORP/SH SH pays an annual dividend of $0.30 per share and has a dividend yield of 2.5%. Bank of Montreal pays an annual dividend of $2.99 per share and has a dividend yield of 4.0%. Bank of Montreal pays out 42.8% of its earnings in the form of a dividend. Bank of Montreal has raised its dividend for 2 consecutive years. Bank of Montreal is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings for ST BK CORP/SH SH and Bank of Montreal, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ST BK CORP/SH SH||0||0||0||0||N/A|
|Bank of Montreal||1||7||2||0||2.10|
Bank of Montreal has a consensus price target of $114.50, suggesting a potential upside of 53.98%. Given Bank of Montreal’s higher probable upside, analysts plainly believe Bank of Montreal is more favorable than ST BK CORP/SH SH.
Earnings & Valuation
This table compares ST BK CORP/SH SH and Bank of Montreal’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ST BK CORP/SH SH||$30.97 million||3.17||$8.58 million||N/A||N/A|
|Bank of Montreal||$25.01 billion||1.90||$4.24 billion||$6.99||10.64|
Bank of Montreal has higher revenue and earnings than ST BK CORP/SH SH.
Insider and Institutional Ownership
1.4% of ST BK CORP/SH SH shares are owned by institutional investors. Comparatively, 42.1% 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 stock will outperform the market over the long term.
Volatility and Risk
ST BK CORP/SH SH has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.
This table compares ST BK CORP/SH SH and Bank of Montreal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ST BK CORP/SH SH||26.79%||13.59%||1.31%|
|Bank of Montreal||17.27%||14.54%||0.78%|
Bank of Montreal beats ST BK CORP/SH SH on 10 of the 15 factors compared between the two stocks.
About ST BK CORP/SH SH
State Bank Corp. engages in the provision of deposit and loan products through its subsidiary. It offers its products to individuals, businesses and professionals throughout Arizona. The company was founded in 2004 and is headquartered in Lake Havasu City, AZ.
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.
Receive News & Ratings for ST BK CORP/SH SH Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ST BK CORP/SH SH and related companies with MarketBeat.com's FREE daily email newsletter.