Bank of Nova Scotia (The) (NYSE: BNS) is one of 323 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Bank of Nova Scotia (The) to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.

Earnings & Valuation

This table compares Bank of Nova Scotia (The) and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Bank of Nova Scotia (The) $19.58 billion N/A 13.02
Bank of Nova Scotia (The) Competitors N/A N/A 17.68

Bank of Nova Scotia (The) is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Bank of Nova Scotia (The) and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of Nova Scotia (The) 0 1 9 0 2.90
Bank of Nova Scotia (The) Competitors 2592 8858 8436 391 2.33

Bank of Nova Scotia (The) presently has a consensus target price of $86.75, suggesting a potential upside of 37.07%. As a group, “Banks” companies have a potential downside of 2.63%. Given Bank of Nova Scotia (The)’s stronger consensus rating and higher possible upside, research analysts clearly believe Bank of Nova Scotia (The) is more favorable than its competitors.

Profitability

This table compares Bank of Nova Scotia (The) and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of Nova Scotia (The) 22.26% 14.54% 0.89%
Bank of Nova Scotia (The) Competitors 18.65% 8.75% 0.93%

Insider & Institutional Ownership

45.3% of Bank of Nova Scotia (The) shares are owned by institutional investors. Comparatively, 53.2% of shares of all “Banks” companies are owned by institutional investors. 10.4% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Bank of Nova Scotia (The) has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Bank of Nova Scotia (The)’s competitors have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Dividends

Bank of Nova Scotia (The) pays an annual dividend of $2.25 per share and has a dividend yield of 3.6%. Bank of Nova Scotia (The) pays out 46.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.2% and pay out 36.7% of their earnings in the form of a dividend.

Summary

Bank of Nova Scotia (The) beats its competitors on 8 of the 14 factors compared.

Bank of Nova Scotia (The) Company Profile

The Bank of Nova Scotia is an international bank and a financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. The Bank offers a range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. Its segments include Canadian Banking, which provides a suite of financial advice and banking solutions to retail, small business, commercial and wealth management customers in Canada; International Banking, which provides a range of financial products, solutions and advice to retail and commercial customers in select regions outside of Canada; Global Banking and Markets, which provides corporate banking, investment banking, capital markets and transaction banking solutions, and Other, which represents smaller operating segments, including Group Treasury.

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