Bank Of Montreal (NYSE:BMO) versus Bankinter (OTCMKTS:BKNIY) Critical Comparison

Bankinter (OTCMKTS:BKNIY) and Bank Of Montreal (NYSE:BMO) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bankinter and Bank Of Montreal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bankinter	1	3	2	0	2.17
Bank Of Montreal	1	6	5	0	2.33

Bank Of Montreal has a consensus price target of $163.00, indicating a potential downside of 3.20%. Given Bank Of Montreal’s stronger consensus rating and higher possible upside, analysts plainly believe Bank Of Montreal is more favorable than Bankinter.

Institutional & Insider Ownership

45.8% of Bank Of Montreal shares are held by institutional investors. 1.0% of Bank Of Montreal shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Bankinter has a beta of -0.17, meaning that its share price is 117% less volatile than the S&P 500. Comparatively, Bank Of Montreal has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bankinter and Bank Of Montreal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bankinter	$5.27 billion	3.27	$1.23 billion	$1.46	13.14
Bank Of Montreal	$55.92 billion	2.10	$6.22 billion	$8.86	19.00

Bank Of Montreal has higher revenue and earnings than Bankinter. Bankinter 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.

Profitability

This table compares Bankinter and Bank Of Montreal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bankinter	24.27%	18.20%	0.90%
Bank Of Montreal	11.72%	13.60%	0.71%

Dividends

Bankinter pays an annual dividend of $0.45 per share and has a dividend yield of 2.3%. Bank Of Montreal pays an annual dividend of $4.81 per share and has a dividend yield of 2.9%. Bankinter pays out 30.8% of its earnings in the form of a dividend. Bank Of Montreal pays out 54.3% 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 increased its dividend for 4 consecutive years. Bank Of Montreal is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Bank Of Montreal beats Bankinter on 12 of the 17 factors compared between the two stocks.

About Bankinter

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain. It offers payroll, pension, business, salary, non-salary, youth salary, current, currency, professional, basic, and management accounts; deposit products; and mortgages and loan products, as well as financing services. The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services. In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products. Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services. Additionally, it offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services. The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990. Bankinter, S.A. was incorporated in 1965 and is based in Madrid, Spain.

About Bank Of Montreal

Bank of Montreal provides diversified financial services primarily in North America. It operates through Canadian P&C, U.S P&C, BMO Wealth Management, and BMO Capital Markets segments. The company’s personal banking products and services include deposits, mortgages, home lending, consumer credit, small business lending, credit cards, cash management, financial and investment advice, and other banking services; and commercial banking products and services comprise various of financing options and treasury and payment solutions, as well as risk management products. It also offers investing, banking, and wealth management advisory; digital investing services; financial solutions for individuals, families, and businesses; provides investment management services to institutional, retail, and high net worth investors; and diversified insurance, and wealth and pension de-risking solutions. In addition, the company provides individual life, critical illness and annuity products, as well as segregated funds, and group creditor and travel insurance to customers; debt and equity capital-raising, loan origination and syndication, balance sheet management, treasury management, mergers and acquisitions advice, restructurings and recapitalizations, trade finance, and risk mitigation services, as well as a range of banking and other operating services. Further, the company offers research and access to financial markets for institutional, corporate and retail clients through an integrated suite of sales and trading solutions related to debt, foreign exchange, interest rates, credit, equities, securitization, and commodities; provides new product development and origination services, as well as risk management and advisory services for hedging strategies, including in interest rates, foreign exchange rates and commodities prices; and funding and liquidity management services. The company was founded in 1817 and is headquartered in Montreal, Canada.