CaixaBank (OTCMKTS:CAIXY – Get Free Report) and Bank of Nova Scotia (NYSE:BNS – Get Free Report) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.
Profitability
This table compares CaixaBank and Bank of Nova Scotia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CaixaBank | N/A | N/A | N/A |
| Bank of Nova Scotia | 9.74% | 11.61% | 0.62% |
Valuation and Earnings
This table compares CaixaBank and Bank of Nova Scotia”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CaixaBank | $24.18 billion | 3.06 | $6.26 billion | N/A | N/A |
| Bank of Nova Scotia | $36.00 billion | 2.25 | $5.70 billion | $3.72 | 17.62 |
CaixaBank has higher earnings, but lower revenue than Bank of Nova Scotia.
Risk & Volatility
CaixaBank has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Bank of Nova Scotia has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
Dividends
CaixaBank pays an annual dividend of $0.13 per share and has a dividend yield of 3.7%. Bank of Nova Scotia pays an annual dividend of $3.20 per share and has a dividend yield of 4.9%. Bank of Nova Scotia pays out 86.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank of Nova Scotia has increased its dividend for 14 consecutive years. Bank of Nova Scotia is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
49.1% of Bank of Nova Scotia shares are owned by institutional investors. 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.
Analyst Recommendations
This is a summary of recent ratings for CaixaBank and Bank of Nova Scotia, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CaixaBank | 1 | 3 | 1 | 0 | 2.00 |
| Bank of Nova Scotia | 0 | 5 | 5 | 0 | 2.50 |
Bank of Nova Scotia has a consensus price target of $86.00, indicating a potential upside of 31.21%. Given Bank of Nova Scotia’s stronger consensus rating and higher probable upside, analysts plainly believe Bank of Nova Scotia is more favorable than CaixaBank.
Summary
Bank of Nova Scotia beats CaixaBank on 11 of the 14 factors compared between the two stocks.
About CaixaBank
CaixaBank, S.A., together with its subsidiaries, provides various banking products and financial services in Spain and internationally. The company operates through Banking and Insurance, Equity Investments, and BPI segments. It also provides solutions related to security, protection, internationalization, and financing; traditional financial advice, independent advice, and broker services; asset management; liquidity management; capital markets, cash management, project finance, asset finance, and M&A services; and various financial services and solutions to public and private sector institutions, as well as distributes non-life and life risk insurance policies; and private banking services. In addition, the company is involved in the real estate business. It has branches and ATMs in Spain; and branches and ATMs in Portugal. CaixaBank, S.A. was founded in 1904 and is based in Valencia, Spain.
About Bank of Nova Scotia
The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. The company offers financial advice and solutions, and banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and retail automotive financing solutions. It also provides business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses. In addition, it provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternatives, and institutional funds. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.
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