Bank of Montreal (NYSE:BMO) and SURUGA BANK ADR REP 10 (OTCMKTS:SUGBY) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Volatility & Risk

Bank of Montreal has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, SURUGA BANK ADR REP 10 has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500.

Earnings & Valuation

This table compares Bank of Montreal and SURUGA BANK ADR REP 10’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of Montreal $29.16 billion 1.15 $4.33 billion $7.10 7.35
SURUGA BANK ADR REP 10 $1.26 billion 0.74 -$874.31 million N/A N/A

Bank of Montreal has higher revenue and earnings than SURUGA BANK ADR REP 10.

Dividends

Bank of Montreal pays an annual dividend of $3.04 per share and has a dividend yield of 5.8%. SURUGA BANK ADR REP 10 pays an annual dividend of $0.69 per share and has a dividend yield of 1.7%. Bank of Montreal pays out 42.8% of its earnings in the form of a dividend. Bank of Montreal has increased its dividend for 3 consecutive years. Bank of Montreal is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Bank of Montreal and SURUGA BANK ADR REP 10’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of Montreal 13.51% 11.85% 0.63%
SURUGA BANK ADR REP 10 N/A N/A N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bank of Montreal and SURUGA BANK ADR REP 10, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of Montreal 1 7 4 0 2.25
SURUGA BANK ADR REP 10 0 0 0 0 N/A

Bank of Montreal currently has a consensus price target of $81.67, indicating a potential upside of 56.39%. Given Bank of Montreal’s higher possible upside, equities research analysts plainly believe Bank of Montreal is more favorable than SURUGA BANK ADR REP 10.

Institutional and Insider Ownership

41.4% of Bank of Montreal shares are held by institutional investors. 1.0% of Bank of Montreal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Bank of Montreal beats SURUGA BANK ADR REP 10 on 14 of the 15 factors compared between the two stocks.

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.

About SURUGA BANK ADR REP 10

Suruga Bank Ltd. engages in banking business and provides financial services. It operates through Banking and Others segments. The Banking segment provides deposits, loans, domestic and foreign exchange transactions, securities and investment trust, and credit card services. The Others segment offers loan, leasing, bank agency operations, credit card, and insurance services. The company was founded by Kitaro Okano on January 4, 1887 and is headquartered in Numazu, Japan.

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