BMO vs BNS

For growth investors, The Bank of Nova Scotia (BNS) is the stronger pick with 148.

2% revenue growth year-over-year, versus -0. 5% for Bank of Montreal (BMO). Bank of Montreal (BMO) offers the better valuation at 18. 4x trailing P/E (10. 9x forward), making it the more compelling value choice. Analysts rate Bank of Montreal (BMO) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Bank of Montreal (BMO) is the cheapest at 18.

4x versus The Bank of Nova Scotia at 18. 7x. On forward P/E, The Bank of Nova Scotia is actually cheaper at 9. 6x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Bank of Montreal wins at 1. 26x versus The Bank of Nova Scotia's 6. 73x — a reasonable growth-adjusted valuation.

Over the past 5 years, Bank of Montreal (BMO) delivered a total return of +83.

2%, compared to +45. 4% for The Bank of Nova Scotia (BNS). Over 10 years, the gap is even starker: BMO returned +207. 9% versus BNS's +123. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Bank of Nova Scotia (BNS) is the lower-risk stock at 0.

60β versus Bank of Montreal's 0. 88β — meaning BMO is approximately 46% more volatile than BNS relative to the S&P 500. On balance sheet safety, Bank of Montreal (BMO) carries a lower debt/equity ratio of 5% versus 6% for The Bank of Nova Scotia — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Bank of Nova Scotia (BNS) is pulling ahead at 148.

2% versus -0. 5% for Bank of Montreal (BMO). On earnings-per-share growth, the picture is similar: Bank of Montreal grew EPS 20. 3% year-over-year, compared to -2. 9% for The Bank of Nova Scotia. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Bank of Montreal (BMO) is the more profitable company, earning 11.

1% net margin versus 10. 6% for The Bank of Nova Scotia — meaning it keeps 11. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BMO leads at 14. 8% versus 14. 4% for BNS. At the gross margin level — before operating expenses — BNS leads at 44. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Bank of Montreal (BMO) is the more undervalued stock at a PEG of 1. 26x versus The Bank of Nova Scotia's 6. 73x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, The Bank of Nova Scotia (BNS) trades at 9. 6x forward P/E versus 10. 9x for Bank of Montreal — 1. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BNS: -8. 0% to $72. 15.

All stocks in this comparison pay dividends.

The Bank of Nova Scotia (BNS) offers the highest yield at 4. 0%, versus 3. 3% for Bank of Montreal (BMO).

For long-horizon retirement investors, The Bank of Nova Scotia (BNS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

60), 4. 0% yield, +123. 3% 10Y return). Both have compounded well over 10 years (BNS: +123. 3%, BMO: +207. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: BMO is a mid-cap income-oriented stock; BNS is a mid-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.