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BNS vs RY
Which Stock Would AI Choose? Bank of Nova Scotia (BNS) vs. Royal Bank of Canada (RY) Stock Comparison
Key Takeaways
- BNS and RY are leading Canadian banks with strong recent performance, both outperforming the S&P/TSX Composite index on a year-to-date and trailing 12-month basis.
- RY maintains a larger market capitalization and broader international operations compared to BNS, which has a more concentrated focus on retail and commercial banking in Canada and select international markets.
- Both stocks have delivered solid returns in recent market activity, supported by stable interest rate environments and resilient economic conditions in Canada.
- Analyst sentiment remains constructive for both, with multiple target price increases noted for RY in recent weeks.
- Risk factors include exposure to interest rate changes, credit quality, and regulatory developments affecting net interest income (NII).
- RY shows slightly stronger long-term historical returns and momentum consistency relative to BNS over multi-year periods.
Introduction
Bank of Nova Scotia (BNS) and Royal Bank of Canada (RY) represent two prominent Canadian financial institutions frequently compared by investors seeking exposure to the banking sector. This analysis examines their relative performance, business profiles, and market positioning in the current environment. The comparison appeals to institutional and retail investors evaluating Canadian bank equities for diversification, income generation, or growth within a stable regulatory framework. Traders monitoring sector rotation and relative strength may also find the insights useful for portfolio construction decisions.
BNS Overview and Recent Performance
Bank of Nova Scotia (BNS) operates as a diversified financial services provider with core activities in personal and commercial banking, wealth management, and international operations. In recent market activity, the stock has posted gains that outpaced the broader S&P/TSX Composite index, reflecting resilience amid moderating interest rates and steady loan demand. Performance has been influenced by improved net interest margins and cost discipline, contributing to positive sentiment in recent weeks. The shares have benefited from broader Canadian bank sector strength without notable company-specific catalysts dominating headlines.
RY Overview and Recent Performance
Royal Bank of Canada (RY) is Canada's largest bank by market capitalization, offering a wide range of services including retail banking, capital markets, wealth management, and insurance. Recent performance shows consistent outperformance versus the S&P/TSX Composite, supported by diversified revenue streams and international growth. Analyst activity in recent weeks has featured several upward target price revisions, reinforcing market confidence. The stock has maintained stability amid sector-wide factors such as economic data releases and monetary policy expectations.
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Head-to-Head Comparison
BNS and RY share exposure to Canadian banking fundamentals but differ in scale and diversification. RY benefits from greater assets under management (AUM) and capital markets revenue, providing broader buffers against domestic economic shifts. BNS offers a more focused international footprint that can introduce additional currency and geopolitical considerations. Recent momentum has favored both, though RY has recorded marginally stronger multi-year compounded returns. Risk profiles remain comparable, centered on net interest income (NII) sensitivity and non-performing loan (NPL) trends, with RY generally viewed as having slightly lower volatility due to its size and diversified operations.
Tickeron AI Verdict
Based on observable factors including trend consistency, relative stability, and positioning within the Canadian banking sector, Tickeron’s AI would currently assign a modest probabilistic edge to RY. This assessment reflects its larger scale, broader revenue diversification, and recent analyst support, which may contribute to more sustained performance in varying market conditions compared with BNS.
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 BNS is a StrongBuy and RY is a StrongBuy.
| BNS | RY | BNS / RY | |
| Capitalization | 114B | 286B | 40% |
| EBITDA | N/A | N/A | - |
| Gain YTD | 26.815 | 20.770 | 129% |
| P/E Ratio | 16.86 | 17.92 | 94% |
| Revenue | 39.4B | 71.1B | 55% |
| Total Cash | N/A | N/A | - |
| Total Debt | 349B | 595B | 59% |
BNS | RY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 77 | 69 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 52 Fair valued | 90 Overvalued | |
PROFIT vs RISK RATING 1..100 | 54 | 14 | |
SMR RATING 1..100 | 3 | 3 | |
PRICE GROWTH RATING 1..100 | 40 | 43 | |
P/E GROWTH RATING 1..100 | 40 | 25 | |
SEASONALITY SCORE 1..100 | 65 | 75 |
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 (52) in the Major Banks industry is somewhat better than the same rating for RY (90). This means that BNS’s stock grew somewhat faster than RY’s over the last 12 months.
RY's Profit vs Risk Rating (14) in the Major Banks industry is somewhat better than the same rating for BNS (54). This means that RY’s stock grew somewhat faster than BNS’s over the last 12 months.
RY's SMR Rating (3) in the Major Banks industry is in the same range as BNS (3). This means that RY’s stock grew similarly to BNS’s over the last 12 months.
BNS's Price Growth Rating (40) in the Major Banks industry is in the same range as RY (43). This means that BNS’s stock grew similarly to RY’s over the last 12 months.
RY's P/E Growth Rating (25) in the Major Banks industry is in the same range as BNS (40). This means that RY’s stock grew similarly to BNS’s over the last 12 months.
| BNS | RY | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 38% | N/A |
| Stochastic ODDS (%) | 2 days ago 41% | 2 days ago 46% |
| Momentum ODDS (%) | 2 days ago 60% | 2 days ago 47% |
| MACD ODDS (%) | 2 days ago 54% | 2 days ago 51% |
| TrendWeek ODDS (%) | 2 days ago 52% | 2 days ago 48% |
| TrendMonth ODDS (%) | 2 days ago 49% | 2 days ago 45% |
| Advances ODDS (%) | 2 days ago 52% | 10 days ago 49% |
| Declines ODDS (%) | 4 days ago 54% | 2 days ago 53% |
| BollingerBands ODDS (%) | 2 days ago 44% | 2 days ago 67% |
| Aroon ODDS (%) | 2 days ago 42% | N/A |
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 overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
BNS’s FA Score shows that 1 FA rating(s) are green while RY’s FA Score has 3 green FA rating(s).
- BNS’s FA Score: 1 green, 4 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.
BNS’s TA Score shows that 5 TA indicator(s) are bullish while RY’s TA Score has 3 bullish TA indicator(s).
- BNS’s TA Score: 5 bullish, 4 bearish.
- RY’s TA Score: 3 bullish, 5 bearish.
Price Growth
BNS (@Major Banks) experienced а -0.39% price change this week, while RY (@Major Banks) price change was -2.23% for the same time period.
The average weekly price growth across all stocks in the @Major Banks industry was -0.86%. For the same industry, the average monthly price growth was -0.40%, and the average quarterly price growth was +35.41%.
Reported Earning Dates
BNS is expected to report earnings on Dec 02, 2026.
RY is expected to report earnings on Dec 03, 2026.
Industries' Descriptions
@Major Banks (-0.86% 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.
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BNS and
Correlation & Price change
A.I.dvisor indicates that over the last year, BNS has been closely correlated with RY. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if BNS jumps, then RY 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 76% 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.