MCO vs. BMO, BBVA, EQIX, BN, APO, USB, PNC, ICE, ING, and SMFG
Should you be buying Moody's stock or one of its competitors? The main competitors of Moody's include Bank of Montreal (BMO), Banco Bilbao Vizcaya Argentaria (BBVA), Equinix (EQIX), Brookfield (BN), Apollo Global Management (APO), U.S. Bancorp (USB), The PNC Financial Services Group (PNC), Intercontinental Exchange (ICE), ING Groep (ING), and Sumitomo Mitsui Financial Group (SMFG). These companies are all part of the "finance" sector.
Moody's (NYSE:MCO) and Bank of Montreal (NYSE:BMO) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, media sentiment, community ranking, earnings and profitability.
92.1% of Moody's shares are owned by institutional investors. Comparatively, 45.8% of Bank of Montreal shares are owned by institutional investors. 0.1% of Moody's shares are owned by insiders. Comparatively, 1.0% of Bank of Montreal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
In the previous week, Moody's had 1 more articles in the media than Bank of Montreal. MarketBeat recorded 12 mentions for Moody's and 11 mentions for Bank of Montreal. Bank of Montreal's average media sentiment score of 1.05 beat Moody's' score of 0.53 indicating that Bank of Montreal is being referred to more favorably in the news media.
Bank of Montreal received 20 more outperform votes than Moody's when rated by MarketBeat users. However, 59.59% of users gave Moody's an outperform vote while only 57.19% of users gave Bank of Montreal an outperform vote.
Moody's presently has a consensus price target of $397.75, indicating a potential upside of 5.75%. Bank of Montreal has a consensus price target of $131.00, indicating a potential upside of 44.10%. Given Bank of Montreal's stronger consensus rating and higher probable upside, analysts plainly believe Bank of Montreal is more favorable than Moody's.
Moody's pays an annual dividend of $3.40 per share and has a dividend yield of 0.9%. Bank of Montreal pays an annual dividend of $3.25 per share and has a dividend yield of 3.6%. Moody's pays out 38.9% of its earnings in the form of a dividend. Bank of Montreal pays out 62.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Moody's has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
Bank of Montreal has higher revenue and earnings than Moody's. Bank of Montreal is trading at a lower price-to-earnings ratio than Moody's, indicating that it is currently the more affordable of the two stocks.
Moody's has a net margin of 27.16% compared to Bank of Montreal's net margin of 7.40%. Moody's' return on equity of 55.23% beat Bank of Montreal's return on equity.
Summary
Moody's beats Bank of Montreal on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MCO and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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