Comparing Bank Of Montreal (NYSE:BMO) and DBS Group (OTCMKTS:DBSDY)

DBS Group (OTCMKTS:DBSDY) and Bank Of Montreal (NYSE:BMO) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Risk and Volatility

DBS Group has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Bank Of Montreal has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Earnings and Valuation

This table compares DBS Group and Bank Of Montreal”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DBS Group	$28.07 billion	4.56	$8.37 billion	N/A	N/A
Bank Of Montreal	$55.92 billion	1.72	$6.22 billion	$8.61	15.82

DBS Group has higher earnings, but lower revenue than Bank Of Montreal.

Institutional and Insider Ownership

0.2% of DBS Group shares are held by institutional investors. Comparatively, 45.8% of Bank Of Montreal shares are held by institutional investors. 1.0% of Bank Of Montreal shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

DBS Group pays an annual dividend of $7.14 per share and has a dividend yield of 4.0%. Bank Of Montreal pays an annual dividend of $4.87 per share and has a dividend yield of 3.6%. Bank Of Montreal pays out 56.6% of its earnings in the form of a dividend. Bank Of Montreal has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations for DBS Group and Bank Of Montreal, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DBS Group	0	0	0	1	4.00
Bank Of Montreal	1	6	3	2	2.50

Bank Of Montreal has a consensus target price of $163.00, indicating a potential upside of 19.63%. Given Bank Of Montreal’s higher probable upside, analysts plainly believe Bank Of Montreal is more favorable than DBS Group.

Profitability

This table compares DBS Group and Bank Of Montreal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DBS Group	N/A	N/A	N/A
Bank Of Montreal	11.76%	12.16%	0.66%

Summary

Bank Of Montreal beats DBS Group on 11 of the 16 factors compared between the two stocks.

About DBS Group

DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. The company’s Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. Its Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The company’s Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.

About Bank Of Montreal

Bank of Montreal provides diversified financial services primarily in North America. It operates through Canadian P&C, U.S P&C, BMO Wealth Management, and BMO Capital Markets segments. The company’s personal banking products and services include deposits, mortgages, home lending, consumer credit, small business lending, credit cards, cash management, financial and investment advice, and other banking services; and commercial banking products and services comprise various of financing options and treasury and payment solutions, as well as risk management products. It also offers investing, banking, and wealth management advisory; digital investing services; financial solutions for individuals, families, and businesses; provides investment management services to institutional, retail, and high net worth investors; and diversified insurance, and wealth and pension de-risking solutions. In addition, the company provides individual life, critical illness and annuity products, as well as segregated funds, and group creditor and travel insurance to customers; debt and equity capital-raising, loan origination and syndication, balance sheet management, treasury management, mergers and acquisitions advice, restructurings and recapitalizations, trade finance, and risk mitigation services, as well as a range of banking and other operating services. Further, the company offers research and access to financial markets for institutional, corporate and retail clients through an integrated suite of sales and trading solutions related to debt, foreign exchange, interest rates, credit, equities, securitization, and commodities; provides new product development and origination services, as well as risk management and advisory services for hedging strategies, including in interest rates, foreign exchange rates and commodities prices; and funding and liquidity management services. The company was founded in 1817 and is headquartered in Montreal, Canada.