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BMO vs BNS
Which Stock Would AI Choose? Bank of Montreal (BMO) vs. Bank of Nova Scotia (BNS) Stock Comparison
Key Takeaways
- Both BMO and BNS are major Canadian banks with strong year-to-date gains amid favorable sector sentiment.
- BMO has delivered higher YTD returns compared with BNS, supported by diversified operations and recent product launches.
- BNS offers a higher dividend yield and has attracted multiple analyst price target upgrades in recent weeks.
- Both banks report third-quarter 2026 earnings later this month, with attention on net interest income (NII) trends and Common Equity Tier 1 (CET1) capital ratios.
- Recent market activity shows Canadian financials gaining share in the TSX index, benefiting both stocks' relative performance.
- Trade-offs center on BMO's domestic strength versus BNS's international exposure and valuation discount.
Introduction
Bank of Montreal (BMO) and Bank of Nova Scotia (BNS) represent two of Canada's largest financial institutions, each with distinct business mixes and geographic footprints. Investors and traders evaluating Canadian bank exposure often compare these names to assess relative value, dividend sustainability, and momentum within the sector. This analysis examines recent performance, key operational drivers, and market positioning to help market participants understand how the two stocks have behaved in the prevailing environment of rising bank valuations and stable interest-rate expectations.
BMO Overview and Recent Performance
Bank of Montreal operates across personal and commercial banking, wealth management, and capital markets in Canada and the United States, with growing international activities. In recent weeks, BMO shares have reflected broad investor interest in Canadian banks, with the stock posting solid year-to-date gains that outpaced the broader TSX index. Notable developments include the announced sale of its Moneris joint venture and the launch of new exchange-traded notes (ETNs) with REX Shares. Sentiment has been supported by the bank's diversified revenue streams and ongoing efficiency initiatives, contributing to consistent price behavior amid sector-wide strength.
BNS Overview and Recent Performance
Bank of Nova Scotia, also known as Scotiabank, maintains a significant international presence alongside its Canadian operations, with emphasis on retail banking in Latin America and the Caribbean. Over recent market activity, BNS has recorded respectable year-to-date appreciation, though at a more moderate pace than some domestic peers. Analyst attention has centered on multiple upward revisions to price targets, reflecting confidence in its dividend profile and international loan book. Performance has been influenced by stable net interest margins and efforts to streamline operations, positioning the stock as a higher-yielding option within the Canadian banking group.
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Head-to-Head Comparison
Business models differ markedly: BMO emphasizes a balanced North American platform with strong wealth-management and capital-markets contributions, while BNS carries greater exposure to emerging-market retail banking. Growth drivers reflect these footprints, with BMO benefiting from domestic mortgage and commercial lending trends and BNS from international expansion and higher dividend payouts. Recent momentum has favored BMO on a year-to-date basis, yet BNS trades at a valuation discount that may appeal to income-focused investors. Risk factors include BNS’s sensitivity to foreign-currency fluctuations versus BMO’s greater U.S. exposure. Sector sentiment remains constructive for both, supported by the rising weight of financials in the TSX.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative price stability, and recent sector positioning, Tickeron’s AI would currently assign a modestly higher probability of favorable short-term performance to BMO. This assessment rests on its stronger year-to-date momentum and diversified domestic revenue base, though outcomes remain subject to earnings results and broader market conditions. Long-term considerations could shift emphasis toward BNS given its yield advantage and valuation.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is BMO is a StrongBuy and BNS is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
BMO’s FA Score shows that 3 FA rating(s) are green whileBNS’s FA Score has 1 green FA rating(s).
- BMO’s FA Score: 3 green, 2 red.
- BNS’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
BMO’s TA Score shows that 4 TA indicator(s) are bullish while BNS’s TA Score has 5 bullish TA indicator(s).
- BMO’s TA Score: 4 bullish, 6 bearish.
- BNS’s TA Score: 5 bullish, 4 bearish.
Price Growth
BMO (@Major Banks) experienced а -0.45% price change this week, while BNS (@Major Banks) price change was +7.51% for the same time period.
The average weekly price growth across all stocks in the @Major Banks industry was +1.55%. For the same industry, the average monthly price growth was +0.53%, and the average quarterly price growth was +21.02%.
Reported Earning Dates
BMO is expected to report earnings on Dec 02, 2026.
BNS is expected to report earnings on Dec 02, 2026.
Industries' Descriptions
@Major Banks (+1.55% weekly)Major banks are among the biggest companies in the world, often times with global reach and market capitalizations in the multi-billions. Large banks often have multiple arms spanning different disciplines, from deposits, to investment banking, to wealth management and insurance. The biggest banks often have key competitive advantages over smaller players in the industry in terms of brand recognition, cost of capital, and efficiency. Think J.P. Morgan, Bank of America, Wells Fargo, and Citigroup.
| BMO | BNS | BMO / BNS | |
| Capitalization | 120B | 113B | 106% |
| EBITDA | N/A | N/A | - |
| Gain YTD | 32.622 | 26.109 | 125% |
| P/E Ratio | 19.42 | 16.81 | 115% |
| Revenue | 37.5B | 38.4B | 98% |
| Total Cash | N/A | N/A | - |
| Total Debt | 288B | 340B | 85% |
BMO | BNS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 64 | 79 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 72 Overvalued | 50 Fair valued | |
PROFIT vs RISK RATING 1..100 | 33 | 53 | |
SMR RATING 1..100 | 4 | 4 | |
PRICE GROWTH RATING 1..100 | 46 | 41 | |
P/E GROWTH RATING 1..100 | 18 | 40 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
BNS's Valuation (50) in the Major Banks industry is in the same range as BMO (72). This means that BNS’s stock grew similarly to BMO’s over the last 12 months.
BMO's Profit vs Risk Rating (33) in the Major Banks industry is in the same range as BNS (53). This means that BMO’s stock grew similarly to BNS’s over the last 12 months.
BMO's SMR Rating (4) in the Major Banks industry is in the same range as BNS (4). This means that BMO’s stock grew similarly to BNS’s over the last 12 months.
BNS's Price Growth Rating (41) in the Major Banks industry is in the same range as BMO (46). This means that BNS’s stock grew similarly to BMO’s over the last 12 months.
BMO's P/E Growth Rating (18) in the Major Banks industry is in the same range as BNS (40). This means that BMO’s stock grew similarly to BNS’s over the last 12 months.
| BMO | BNS | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 56% | 1 day ago 44% |
| Stochastic ODDS (%) | 1 day ago 60% | 1 day ago 29% |
| Momentum ODDS (%) | 1 day ago 55% | 1 day ago 58% |
| MACD ODDS (%) | 1 day ago 48% | 1 day ago 51% |
| TrendWeek ODDS (%) | 1 day ago 56% | 1 day ago 52% |
| TrendMonth ODDS (%) | 1 day ago 54% | 1 day ago 48% |
| Advances ODDS (%) | 14 days ago 54% | 2 days ago 52% |
| Declines ODDS (%) | 1 day ago 54% | 8 days ago 55% |
| BollingerBands ODDS (%) | 1 day ago 68% | 1 day ago 40% |
| Aroon ODDS (%) | 1 day ago 55% | 1 day ago 45% |
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BNS and
Correlation & Price change
A.I.dvisor indicates that over the last year, BNS has been closely correlated with BMO. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if BNS jumps, then BMO could also see price increases.