KBC GRP NV/ADR (OTCMKTS:KBCSY) and Bank of Montreal (NYSE:BMO) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Institutional & Insider Ownership
0.1% of KBC GRP NV/ADR shares are owned by institutional investors. Comparatively, 43.9% of Bank of Montreal shares are owned by institutional investors. 1.0% of Bank of Montreal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
KBC GRP NV/ADR has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Bank of Montreal has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
Earnings & Valuation
This table compares KBC GRP NV/ADR and Bank of Montreal’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KBC GRP NV/ADR||$11.77 billion||2.59||$3.04 billion||$3.53||10.33|
|Bank of Montreal||$25.01 billion||1.95||$4.24 billion||$6.99||10.93|
Bank of Montreal has higher revenue and earnings than KBC GRP NV/ADR. KBC GRP NV/ADR is trading at a lower price-to-earnings ratio than Bank of Montreal, indicating that it is currently the more affordable of the two stocks.
KBC GRP NV/ADR pays an annual dividend of $0.70 per share and has a dividend yield of 1.9%. Bank of Montreal pays an annual dividend of $3.05 per share and has a dividend yield of 4.0%. KBC GRP NV/ADR pays out 19.8% of its earnings in the form of a dividend. Bank of Montreal pays out 43.6% 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. 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 recent ratings and target prices for KBC GRP NV/ADR and Bank of Montreal, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KBC GRP NV/ADR||0||0||1||0||3.00|
|Bank of Montreal||1||5||3||0||2.22|
Bank of Montreal has a consensus price target of $114.50, suggesting a potential upside of 49.85%. Given Bank of Montreal’s higher probable upside, analysts clearly believe Bank of Montreal is more favorable than KBC GRP NV/ADR.
This table compares KBC GRP NV/ADR and Bank of Montreal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KBC GRP NV/ADR||26.90%||13.41%||0.84%|
|Bank of Montreal||17.43%||14.89%||0.79%|
Bank of Montreal beats KBC GRP NV/ADR on 12 of the 17 factors compared between the two stocks.
About KBC GRP NV/ADR
KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. It accepts deposits; offers home and mortgage loans; consumer finance and SME funding services; credit, asset management, and life and non-life insurance; payments, and money and debt market services; investment fund solutions; brokerage and corporate finance, foreign trade finance, cash management, leasing, etc.; and other specialized financial products and services. The company also provides telephone, Internet, and mobile banking services. As of December 31, 2018, it operated 585 bank branches and 374 insurance agencies in Belgium; 777 bank branches in Czech Republic, the Slovak Republic, Hungary, and Bulgaria; and 27 bank branches internationally. KBC Group NV serves customers through agents, brokers, multi-agents, and various electronic channels. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium.
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 KBC GRP NV/ADR Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KBC GRP NV/ADR and related companies with MarketBeat.com's FREE daily email newsletter.