Bank of Montreal (NYSE:BMO) and PEOPLES BK COMM/SH (OTCMKTS:PBCO) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Bank of Montreal and PEOPLES BK COMM/SH, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of Montreal 1 7 3 0 2.18
PEOPLES BK COMM/SH 0 0 0 0 N/A

Bank of Montreal currently has a consensus price target of $93.60, indicating a potential upside of 94.03%. Given Bank of Montreal’s higher probable upside, analysts clearly believe Bank of Montreal is more favorable than PEOPLES BK COMM/SH.

Earnings & Valuation

This table compares Bank of Montreal and PEOPLES BK COMM/SH’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of Montreal $29.16 billion 1.06 $4.33 billion $7.10 6.79
PEOPLES BK COMM/SH $22.08 million 1.40 $4.07 million N/A N/A

Bank of Montreal has higher revenue and earnings than PEOPLES BK COMM/SH.

Profitability

This table compares Bank of Montreal and PEOPLES BK COMM/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of Montreal 14.99% 13.89% 0.75%
PEOPLES BK COMM/SH 18.43% N/A N/A

Insider & Institutional Ownership

41.4% of Bank of Montreal shares are held by institutional investors. Comparatively, 7.3% of PEOPLES BK COMM/SH shares are held by institutional investors. 1.0% of Bank of Montreal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Bank of Montreal has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, PEOPLES BK COMM/SH has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Summary

Bank of Montreal beats PEOPLES BK COMM/SH on 9 of the 12 factors compared between the two stocks.

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.

About PEOPLES BK COMM/SH

People's Bank of Commerce provides banking services to businesses and individuals primarily in Southern Oregon. It offers various deposit products, including checking, savings, and money market accounts, as well as certificates of deposit. The company's personal loans consist of home equity loans and credit lines; consumer loans and credit lines comprising auto, recreational vehicle, boat, personal line of credit, and savings secured loans; and home lot and construction loans. Its business loan portfolio includes commercial loans comprising commercial real estate, equipment purchase, certificates of deposit and listed stock secured, commercial real estate construction, residential construction loans, and lines of credit; and small business/government loans. In addition, the company provides merchant services, online and mobile banking, bill pay, e-statements, sweep accounts, debit and credit cards, and ATM cards. It operates six full-service branches in Ashland, Central Point, Grants Pass, and Medford, Oregon. People's Bank of Commerce was incorporated in 1997 and is headquartered in Medford, Oregon.

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