Critical Analysis: Bank Of Montreal (NYSE:BMO) and BV Financial (NASDAQ:BVFL)
by Kim Johansen · The Markets DailyBV Financial (NASDAQ:BVFL – Get Free Report) and Bank Of Montreal (NYSE:BMO – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Analyst Ratings
This is a summary of current ratings for BV Financial and Bank Of Montreal, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BV Financial | 0 | 0 | 1 | 0 | 3.00 |
| 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 5.96%. Given Bank Of Montreal’s higher possible upside, analysts plainly believe Bank Of Montreal is more favorable than BV Financial.
Profitability
This table compares BV Financial and Bank Of Montreal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BV Financial | 25.01% | 9.31% | 1.91% |
| Bank Of Montreal | 11.72% | 13.60% | 0.71% |
Volatility and Risk
BV Financial has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Bank Of Montreal has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Institutional & Insider Ownership
42.6% of BV Financial shares are owned by institutional investors. Comparatively, 45.8% of Bank Of Montreal shares are owned by institutional investors. 15.7% of BV Financial shares are owned by company insiders. Comparatively, 1.0% of Bank Of Montreal shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares BV Financial and Bank Of Montreal”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BV Financial | $52.43 million | 3.38 | $13.49 million | $1.52 | 13.76 |
| Bank Of Montreal | $38.50 billion | 3.13 | $6.22 billion | $8.86 | 19.56 |
Bank Of Montreal has higher revenue and earnings than BV Financial. BV Financial 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.
Summary
Bank Of Montreal beats BV Financial on 9 of the 14 factors compared between the two stocks.
About BV Financial
BV Financial, Inc. operates as the holding company for BayVanguard Bank that provides various financial services to individuals and businesses in Maryland. The company offers checking and money market accounts, savings accounts, and certificates of deposits. Its loan products include real estate, home equity, construction, lot, auto, boat, and other personal loans; and commercial lending products, such as commercial equipment/installation, commercial real estate, construction, investment real estate, lines of credit, and SBA loans, as well as loans for short-term real estate purchase, renovation, and sale projects. The company offers ATM, overdraft, safe deposit, bill pay, remote deposit capture, ACH origination, merchant, and online banking services. BV Financial, Inc. was founded in 1873 and is headquartered in Baltimore, Maryland.
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.