CU Bancorp (CA) (NASDAQ: CUNB) and Bank Of Montreal (NYSE:BMO) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.
This table compares CU Bancorp (CA) and Bank Of Montreal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CU Bancorp (CA)||25.42%||9.73%||1.05%|
|Bank Of Montreal||20.04%||14.36%||0.80%|
Valuation and Earnings
This table compares CU Bancorp (CA) and Bank Of Montreal’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CU Bancorp (CA)||$113.01 million||5.52||$29.44 million||$1.68||21.19|
|Bank Of Montreal||$16.67 billion||3.04||$4.15 billion||$6.14||12.21|
Bank Of Montreal has higher revenue and earnings than CU Bancorp (CA). Bank Of Montreal is trading at a lower price-to-earnings ratio than CU Bancorp (CA), indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
CU Bancorp (CA) has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Bank Of Montreal has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Bank Of Montreal pays an annual dividend of $2.78 per share and has a dividend yield of 3.7%. CU Bancorp (CA) does not pay a dividend. Bank Of Montreal pays out 45.3% of its earnings in the form of a dividend.
This is a breakdown of recent ratings for CU Bancorp (CA) and Bank Of Montreal, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CU Bancorp (CA)||0||1||5||0||2.83|
|Bank Of Montreal||0||7||3||0||2.30|
CU Bancorp (CA) presently has a consensus target price of $41.33, indicating a potential upside of 16.10%. Bank Of Montreal has a consensus target price of $100.25, indicating a potential upside of 33.68%. Given Bank Of Montreal’s higher possible upside, analysts clearly believe Bank Of Montreal is more favorable than CU Bancorp (CA).
Insider & Institutional Ownership
56.4% of CU Bancorp (CA) shares are held by institutional investors. Comparatively, 42.8% of Bank Of Montreal shares are held by institutional investors. 9.1% of CU Bancorp (CA) shares are held by company insiders. Comparatively, 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 company will outperform the market over the long term.
CU Bancorp (CA) beats Bank Of Montreal on 9 of the 16 factors compared between the two stocks.
CU Bancorp (CA) Company Profile
CU Bancorp is the bank holding company of California United Bank (the Bank). The Bank is a full-service commercial bank offering a range of banking products and services designed for small and medium-sized businesses, non-profit organizations, business owners and entrepreneurs, and the professional community. The Bank provides a range of deposit products, such as savings accounts, certificates of deposit and money market accounts, and loan products. The Bank also provides cash management services, online banking, commercial credit cards and other primarily business-oriented products. Its other services include commercial and stand-by letters of credit, domestic and international wire transfers, on site Automated Teller Machines (ATMs), and Visa Debit Cards and ATM cards. It also provides bank-by-mail services, courier services, armored transport, lock box, cash vault, cash management services, telephone banking, night depositories, commercial credit cards and international services.
Bank Of Montreal Company Profile
Bank of Montreal (the Bank) is a financial services provider. The Bank provides a range of personal and commercial banking, wealth management and investment banking products and services. The Bank conducts its business through three operating groups: Personal and Commercial Banking (P&C), Wealth Management and BMO Capital Markets. The P&C business includes two retail and business banking operating segments, such as Canadian Personal and Commercial Banking (Canadian P&C), and the United States Personal and Commercial Banking (U.S. P&C). The Bank’s Wealth Management business serves a range of client segments, from mainstream to ultra-high net worth and institutional, with an offering of wealth management products and services, including insurance. BMO Capital Markets is a North American-based financial services provider offering a range of products and services to corporate, institutional and government clients. The Bank has over 1,500 bank branches in Canada and the United States.
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