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BMO vs. RY: Bank of Montreal vs. Royal Bank of Canada Stock Comparison

How do Bank of Montreal (BMO) and Royal Bank of Canada (RY) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Bank of Montreal (BMO) and Royal Bank of Canada (RY) are both classified in the Diversified Banks sub-industry within the broader Banks industry, placing them in the closest GICS peer bucket.

Company profile comparison for Bank of Montreal (BMO) and Royal Bank of Canada (RY)
Profile ItemBMORY
NameBank of MontrealRoyal Bank of Canada
Country/RegionCanadaCanada
GICS SectorFinancialsFinancials
GICS Industry GroupBanksBanks
GICS IndustryBanksBanks
GICS Sub-IndustryDiversified BanksDiversified Banks
Market Capitalization118.95 billion USD278.49 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateOctober 27, 1994October 16, 1995
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

BMO
RY
GSPC
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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Bank of Montreal (BMO) and Royal Bank of Canada (RY). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Bank of Montreal (BMO) and Royal Bank of Canada (RY). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Bank of Montreal (BMO) and Royal Bank of Canada (RY)
MetricBMORY
Total Return (1Y)44.12%42.94%
Total Return (3Y, Annualized)35.66%38.10%
Total Return (5Y, Annualized)13.54%17.71%

Risk Profile

Drawdown History

BMO
RY
GSPC
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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Bank of Montreal (BMO) and Royal Bank of Canada (RY). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Bank of Montreal (BMO) and Royal Bank of Canada (RY)
MetricBMORY
Volatility (1Y, Annualized)20.96%17.09%
Beta (5Y)0.930.78
Max Drawdown (5Y)-34.29%-28.69%
Avg. Volume (3M)728.11K1.25M

Risk-Adjusted Performance

Risk-Return Positioning

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BMO and RY are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Bank of Montreal (BMO) and Royal Bank of Canada (RY)
MetricBMORY
Sharpe Ratio (1Y)1.902.26
Sortino Ratio (1Y)2.793.50

Profitability

ROE (TTM)

Royal Bank of Canada (RY) at 16.21% sits in the top ROE quartile, while Bank of Montreal (BMO) at 10.57% is closer to the peer norm — stronger capital efficiency for RY.

BMO

Banks industry group

10.57%

Max
19.84%
Q3
13.67%
Median
11.49%
BMO
10.57%
Q1
9.50%
Min
3.64%

RY

Banks industry group

16.21%

Max
19.84%
RY
16.21%
Q3
13.67%
Median
11.49%
Q1
9.50%
Min
3.64%
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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY): A comparison of their ROE against the Banks industry group benchmark.

Net Margin (TTM)

Royal Bank of Canada (RY) at 33.87% keeps about the industry-typical share of revenue as profit, while Bank of Montreal (BMO) at 25.66% retains only a bottom-quartile share.

BMO

Banks industry group

25.66%

Max
47.19%
Q3
35.25%
Median
31.21%
Q1
27.11%
BMO
25.66%
Min
14.93%

RY

Banks industry group

33.87%

Max
47.19%
Q3
35.25%
RY
33.87%
Median
31.21%
Q1
27.11%
Min
14.93%
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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY): A comparison of their net margin against the Banks industry group benchmark.

Operating Margin (TTM)

Neither side reports a meaningful operating margin: for Bank of Montreal (BMO) in Banks and Royal Bank of Canada (RY) in Banks, funding costs are part of the core business, so net margin and ROE are the cleaner profitability reads.

Profitability Metrics

Profitability metrics for Bank of Montreal (BMO) and Royal Bank of Canada (RY)
MetricBMORY
ROE (TTM)10.57%16.21%
ROA (TTM)0.62%0.96%
Net Margin (TTM)25.66%33.87%
Operating Margin (TTM)----
Gross Margin (TTM)----

Growth

Revenue Growth

Both Bank of Montreal (BMO) at 12.67% and Royal Bank of Canada (RY) at 15.73% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Bank of Montreal (BMO) reports EPS growth of 20.29%, ranked against its industry; Royal Bank of Canada (RY) has no EPS growth figure this period.

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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Bank of Montreal (BMO) and Royal Bank of Canada (RY)
MetricBMORY
Revenue Growth (YoY)12.67%15.73%
Revenue Growth (3Y CAGR)11.19%10.90%
EPS Growth (YoY)20.29%--
EPS Growth (3Y CAGR)-16.98%--

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: Bank of Montreal (BMO) in Banks and Royal Bank of Canada (RY) in Banks both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for both: Bank of Montreal (BMO) in Banks and Royal Bank of Canada (RY) in Banks run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Financial strength metrics for Bank of Montreal (BMO) and Royal Bank of Canada (RY)
MetricBMORY
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Both Bank of Montreal (BMO) at 3.87% and Royal Bank of Canada (RY) at 3.23% offer top-quartile dividend income relative to share price within their industries.

BMO

Banks industry group

3.87%

Max
5.79%
BMO
3.87%
Q3
3.18%
Median
2.39%
Q1
1.20%
Min
0.00%

RY

Banks industry group

3.23%

Max
5.79%
RY
3.23%
Q3
3.18%
Median
2.39%
Q1
1.20%
Min
0.00%
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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY): A comparison of their dividend yield against the Banks industry group benchmark.

Dividend Payout Ratio (TTM)

Both Bank of Montreal (BMO) at 54.44% and Royal Bank of Canada (RY) at 41.49% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

BMO

Banks industry group

54.44%

Max
70.75%
BMO
54.44%
Q3
41.28%
Median
29.26%
Q1
18.98%
Min
0.00%

RY

Banks industry group

41.49%

Max
70.75%
RY
41.49%
Q3
41.28%
Median
29.26%
Q1
18.98%
Min
0.00%
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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY): A comparison of their payout ratio against the Banks industry group benchmark.

Dividend Metrics

Dividend metrics for Bank of Montreal (BMO) and Royal Bank of Canada (RY)
MetricBMORY
Dividend Yield (TTM)3.87%3.23%
Dividend Payout Ratio (TTM)54.44%41.49%

Valuation

P/E Ratio (TTM)

Both look expensive on trailing earnings: Royal Bank of Canada (RY) at 17.58 sits in the richer P/E ratio quartile, and Bank of Montreal (BMO) at 19.34 is richer still, above its industry range.

BMO

Banks industry group

19.34

BMO
19.34
Max
18.16
Q3
13.75
Median
11.81
Q1
10.64
Min
6.49

RY

Banks industry group

17.58

Max
18.16
RY
17.58
Q3
13.75
Median
11.81
Q1
10.64
Min
6.49
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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY): A comparison of their P/E ratio against the Banks industry group benchmark.

P/S Ratio (TTM)

P/S ratio is set aside for both Bank of Montreal (BMO) in Banks and Royal Bank of Canada (RY) in Banks: without a conventional revenue line, pricing per dollar of sales isn’t meaningful, and book- or earnings-based multiples make the better comparison.

P/B Ratio (MRQ)

Both look rich against book: Bank of Montreal (BMO) at 1.97 sits in the upper P/B ratio quartile, and Royal Bank of Canada (RY) at 2.92 prices even higher, above its industry range.

BMO

Banks industry group

1.97

Max
2.28
BMO
1.97
Q3
1.58
Median
1.32
Q1
1.10
Min
0.59

RY

Banks industry group

2.92

RY
2.92
Max
2.28
Q3
1.58
Median
1.32
Q1
1.10
Min
0.59
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Bank of Montreal (BMO) vs. Royal Bank of Canada (RY): A comparison of their P/B ratio against the Banks industry group benchmark.

Valuation Metrics

Valuation metrics for Bank of Montreal (BMO) and Royal Bank of Canada (RY)
MetricBMORY
P/E Ratio (TTM)19.3417.58
P/S Ratio (TTM)----
P/B Ratio (MRQ)1.972.92
Free Cash Flow Yield (TTM)----