Scotiabank (NYSE: BNS) and Eagle Bancorp Montana (NASDAQ:EBMT) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.
Earnings & Valuation
This table compares Scotiabank and Eagle Bancorp Montana’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
|Eagle Bancorp Montana
Scotiabank has higher revenue and earnings than Eagle Bancorp Montana. Scotiabank is trading at a lower price-to-earnings ratio than Eagle Bancorp Montana, indicating that it is currently the more affordable of the two stocks.
Scotiabank pays an annual dividend of $2.54 per share and has a dividend yield of 4.2%. Eagle Bancorp Montana pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Scotiabank pays out 48.5% of its earnings in the form of a dividend. Eagle Bancorp Montana pays out 28.3% 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.
Institutional and Insider Ownership
47.5% of Scotiabank shares are owned by institutional investors. Comparatively, 43.4% of Eagle Bancorp Montana shares are owned by institutional investors. 6.9% of Eagle Bancorp Montana shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Scotiabank and Eagle Bancorp Montana’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Eagle Bancorp Montana
Volatility & Risk
Scotiabank has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Eagle Bancorp Montana has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Scotiabank and Eagle Bancorp Montana, as reported by MarketBeat.
||Strong Buy Ratings
|Eagle Bancorp Montana
Scotiabank currently has a consensus price target of $90.00, suggesting a potential upside of 49.13%. Given Scotiabank’s higher probable upside, analysts plainly believe Scotiabank is more favorable than Eagle Bancorp Montana.
Scotiabank beats Eagle Bancorp Montana on 11 of the 15 factors compared between the two stocks.
The Bank of Nova Scotia provides various financial services in North America, Latin America, the Caribbean and Central America, and the Asia-Pacific. It offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and related creditor insurance to individuals and small businesses; and commercial banking solutions comprising lending, deposit, cash management, and trade finance solutions to medium and large businesses, including automotive dealers and their customers. The company also provides a suite of investment and wealth management advice, services, products, and solutions to customers, as well as advisors. Its asset management business focuses on developing investment solutions for retail and institutional investors; and wealth management solutions include private customer, online brokerage, full-service brokerage, pension, and institutional customer services. In addition, the company offers corporate lending; trade finance and cash management; investment banking services comprising corporate finance, and mergers and acquisitions; fixed income and equity underwriting, sales, trading, and research services; prime brokerage and stock lending services; foreign exchange sales and trading services; commodity derivatives; precious and base metals sales, trading, financing, and physical services; and collateral management services for corporate, government, and institutional investor clients, as well as international banking services for retail, corporate, and commercial customers. Further, it provides mobile, Internet, and telephone banking services. The company operates a network of 963 branches and approximately 3,600 automated banking machines in Canada; and approximately 1,800 branches internationally, as well as contact and business support centers. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.
About Eagle Bancorp Montana
Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company offers one-to-four family residential mortgage loans; home equity loans; commercial real estate mortgage and land loans; real estate construction loans; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; and consumer loans comprising loans that are secured by automobiles, recreational vehicles, and boats, as well as unsecured personal loans and lines of credit, and loans secured by deposits. It also provides wealth management and mortgage loan services. As of January 26, 2017, the company served consumers and small businesses through 13 banking offices in Southern Montana. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.
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