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BMO vs RY
Which Stock Would AI Choose? Bank of Montreal (BMO) vs. Royal Bank of Canada (RY) Stock Comparison
Key Takeaways
- BMO reached a new 52-week high in mid-August 2026 amid strong quarterly results that exceeded analyst estimates.
- RY has delivered robust year-to-date gains of approximately 22%, outperforming the broader Canadian market index.
- Both banks operate primarily in the Canadian financial sector with significant U.S. and international exposure, though RY maintains a larger overall scale and market capitalization.
- Recent market activity shows BMO experiencing higher volatility with notable volume surges, while RY has traded closer to its recent highs with more measured movements.
- Upcoming earnings for RY later in August could influence short-term sentiment, contrasting with BMO’s recent positive earnings reaction.
- Relative performance in recent weeks highlights trade-offs in stability versus momentum between the two large-cap Canadian banks.
Introduction
Bank of Montreal (BMO) and Royal Bank of Canada (RY) represent two of Canada’s largest financial institutions, making them frequent points of comparison for investors seeking exposure to the domestic banking sector. Both companies offer diversified services including retail and commercial banking, wealth management, and capital markets operations, with meaningful operations in the United States and internationally. This comparison appeals to traders monitoring relative performance in Canadian equities, portfolio managers evaluating sector allocations, and those interested in how large-bank stocks respond to interest-rate environments and economic conditions. The analysis focuses on observable recent market behavior and key operational distinctions to support informed evaluation.
BMO Overview and Recent Performance
Bank of Montreal (BMO) provides a full range of banking, investment, and financial services across North America. In recent weeks, the stock reached a new 52-week high near $184.82 in mid-August before experiencing some profit-taking pressure and elevated trading volume. Quarterly results released earlier in the period exceeded consensus expectations, supporting positive sentiment. Price action reflected broader market rotation into financials, tempered by occasional volatility tied to macroeconomic data releases. Overall positioning remains influenced by stable net interest income trends and ongoing integration of recent acquisitions.
RY Overview and Recent Performance
Royal Bank of Canada (RY) is Canada’s largest bank by assets, offering extensive retail, commercial, wealth, and capital markets services globally. During recent market activity, the stock has traded near the upper end of its 52-week range, with year-to-date returns exceeding 22% and outpacing the S&P/TSX Composite Index. Performance has been supported by consistent earnings growth and a diversified revenue base. Upcoming quarterly results scheduled for late August represent a near-term catalyst. The share price has shown relatively contained daily moves compared with peers, reflecting steady investor interest amid favorable sector tailwinds.
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Head-to-Head Comparison
In terms of business model, RY operates at greater scale with a larger wealth-management franchise and international footprint, while BMO emphasizes targeted U.S. expansion and commercial lending. Growth drivers differ modestly, with BMO recently benefiting from acquisition synergies and RY leveraging broader fee-income streams. Recent momentum favored BMO with its 52-week high achievement, whereas RY has posted steadier cumulative gains. Risk factors include interest-rate sensitivity for both, though RY’s larger balance sheet may amplify exposure to credit cycles. Market sentiment remains constructive for Canadian banks overall, with BMO showing sharper short-term swings and RY demonstrating more consistent positioning near highs.
Tickeron AI Verdict
Based on observable trend consistency and recent catalyst response, Tickeron’s AI models currently assign a modest edge to BMO for its ability to sustain momentum following earnings outperformance. RY remains competitively positioned given its scale and upcoming results, suggesting either stock could perform well depending on broader market conditions and sector rotation. The assessment reflects probabilistic evaluation of recent price behavior rather than directional forecasts.
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 RY 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 whileRY’s FA Score has 3 green FA rating(s).
- BMO’s FA Score: 3 green, 2 red.
- RY’s FA Score: 3 green, 2 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 RY’s TA Score has 4 bullish TA indicator(s).
- BMO’s TA Score: 4 bullish, 6 bearish.
- RY’s TA Score: 4 bullish, 5 bearish.
Price Growth
BMO (@Major Banks) experienced а -0.45% price change this week, while RY (@Major Banks) price change was -0.33% 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.
RY is expected to report earnings on Dec 03, 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 | RY | BMO / RY | |
| Capitalization | 120B | 284B | 42% |
| EBITDA | N/A | N/A | - |
| Gain YTD | 32.622 | 19.972 | 163% |
| P/E Ratio | 19.42 | 17.85 | 109% |
| Revenue | 37.5B | 69.5B | 54% |
| Total Cash | N/A | N/A | - |
| Total Debt | 288B | 574B | 50% |
BMO | RY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 64 | 72 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 72 Overvalued | 89 Overvalued | |
PROFIT vs RISK RATING 1..100 | 33 | 14 | |
SMR RATING 1..100 | 4 | 4 | |
PRICE GROWTH RATING 1..100 | 46 | 43 | |
P/E GROWTH RATING 1..100 | 18 | 28 | |
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.
BMO's Valuation (72) in the Major Banks industry is in the same range as RY (89). This means that BMO’s stock grew similarly to RY’s over the last 12 months.
RY's Profit vs Risk Rating (14) in the Major Banks industry is in the same range as BMO (33). This means that RY’s stock grew similarly to BMO’s over the last 12 months.
RY's SMR Rating (4) in the Major Banks industry is in the same range as BMO (4). This means that RY’s stock grew similarly to BMO’s over the last 12 months.
RY's Price Growth Rating (43) in the Major Banks industry is in the same range as BMO (46). This means that RY’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 RY (28). This means that BMO’s stock grew similarly to RY’s over the last 12 months.
| BMO | RY | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 56% | N/A |
| Stochastic ODDS (%) | 1 day ago 60% | 1 day ago 51% |
| Momentum ODDS (%) | 1 day ago 55% | 1 day ago 50% |
| MACD ODDS (%) | 1 day ago 48% | 1 day ago 57% |
| TrendWeek ODDS (%) | 1 day ago 56% | 1 day ago 49% |
| TrendMonth ODDS (%) | 1 day ago 54% | 1 day ago 45% |
| Advances ODDS (%) | 14 days ago 54% | 2 days ago 49% |
| Declines ODDS (%) | 1 day ago 54% | 8 days ago 54% |
| BollingerBands ODDS (%) | 1 day ago 68% | 1 day ago 61% |
| Aroon ODDS (%) | 1 day ago 55% | 2 days ago 48% |
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BMO and
Correlation & Price change
A.I.dvisor indicates that over the last year, BMO has been closely correlated with TD. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if BMO jumps, then TD could also see price increases.
RY and
Correlation & Price change
A.I.dvisor indicates that over the last year, RY has been closely correlated with BNS. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if RY jumps, then BNS could also see price increases.