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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 BNS showing stronger one-year total returns of approximately 57% compared to RY's 54% as of late May 2026.
- RY has delivered superior year-to-date performance in 2026 at around 13.5%, outpacing BNS's 7.9% amid broader market gains.
- BNS trades at more attractive valuations, with lower forward price-to-earnings and price-to-book ratios, positioning it as a value option relative to RY.
- Both stocks benefit from stable Canadian banking sector fundamentals, with RY offering greater scale and diversification while BNS has notable international exposure.
- Recent analyst activity includes price target increases for both, though consensus ratings lean toward Hold for BNS and mixed views for RY.
- Market sentiment reflects resilience in Canadian financials, supported by buyback programs and capital management initiatives at both institutions.
Introduction
Bank of Nova Scotia (BNS) and Royal Bank of Canada (RY) represent two of Canada's largest financial institutions, making them natural subjects for comparison among investors seeking exposure to the banking sector. This analysis examines their relative performance, business profiles, and positioning in the current market environment. The comparison is particularly relevant for portfolio managers, institutional investors, and individual traders focused on large-cap financials, dividend stability, and cross-border banking dynamics. Both stocks trade on major exchanges and appeal to those evaluating Canadian equities within broader North American allocations.
BNS Overview and Recent Performance
Bank of Nova Scotia, commonly known as Scotiabank, operates as a diversified financial services provider with significant international operations, including retail and commercial banking in Latin America and the Caribbean alongside its core Canadian franchise. In recent weeks, BNS shares have demonstrated solid momentum, with one-year total returns reaching approximately 57% as of May 22, 2026, supported by robust trading revenues and capital return initiatives such as share buyback programs. Sentiment has been influenced by analyst price target upgrades and the bank's focus on efficiency improvements, though year-to-date gains of about 7.9% have trailed the broader S&P/TSX Composite index. Key developments include continued expansion of its stake in U.S. regional banking and positive earnings momentum in global markets segments.
RY Overview and Recent Performance
Royal Bank of Canada is Canada's largest bank by market capitalization, offering a wide array of services including personal and commercial banking, wealth management, insurance, and capital markets activities with a strong North American and international footprint. Recent market activity has seen RY shares advance to new highs, delivering year-to-date returns of roughly 13.5% through May 22, 2026, outperforming many peers amid favorable interest rate environments and wealth management growth. One-year returns stand near 54%, with sentiment bolstered by Fitch rating upgrades on certain debt and multiple analyst target increases. The stock has benefited from its scale and diversified revenue streams, maintaining steady performance relative to sector benchmarks during recent periods of market volatility.
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Head-to-Head Comparison
In terms of business models, RY emphasizes greater scale and diversification across wealth management and insurance, providing more stable fee-based revenues, while BNS maintains deeper exposure to international markets, which can introduce additional currency and geopolitical considerations. Growth drivers differ as RY benefits from its dominant Canadian market position and U.S. expansion, contrasting with BNS's focus on efficiency gains and targeted acquisitions. Recent momentum favors BNS on a longer trailing basis, though RY has shown stronger year-to-date consistency. Risk factors include interest rate sensitivity for both, with BNS carrying relatively higher valuation discounts that may appeal to value-oriented strategies. Sector exposure remains concentrated in Canadian banking for both, though market sentiment reflects broad support for the group amid solid capital ratios and dividend yields.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative valuation positioning, and recent momentum patterns, Tickeron’s AI analysis indicates a probabilistic preference for RY in longer-term scenarios due to its scale and diversification advantages, while BNS may exhibit stronger short-term technical characteristics. This assessment draws from comparative performance metrics and stability indicators rather than forward projections.
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.
Disclaimers and LimitationsTo 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 Buy and RY is a Buy.
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).
BNS’s FA Score shows that 1 FA rating(s) are green whileRY’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 4 TA indicator(s) are bullish while RY’s TA Score has 2 bullish TA indicator(s).
- BNS’s TA Score: 4 bullish, 3 bearish.
- RY’s TA Score: 2 bullish, 3 bearish.
Price Growth
BNS (@Major Banks) experienced а +2.69% price change this week, while RY (@Major Banks) price change was +1.84% for the same time period.
The average weekly price growth across all stocks in the @Major Banks industry was +0.98%. For the same industry, the average monthly price growth was +7.87%, and the average quarterly price growth was +16.30%.
Reported Earning Dates
BNS is expected to report earnings on Aug 25, 2026.
RY is expected to report earnings on Aug 27, 2026.
Industries' Descriptions
@Major Banks (+0.98% 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.
| BNS | RY | BNS / RY | |
| Capitalization | 106B | 281B | 38% |
| EBITDA | N/A | N/A | - |
| Gain YTD | 17.926 | 18.916 | 95% |
| P/E Ratio | 16.98 | 18.68 | 91% |
| Revenue | 38.4B | 69.5B | 55% |
| Total Cash | N/A | N/A | - |
| Total Debt | 340B | 574B | 59% |
BNS | RY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 36 | 21 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 50 Fair valued | 90 Overvalued | |
PROFIT vs RISK RATING 1..100 | 65 | 18 | |
SMR RATING 1..100 | 5 | 4 | |
PRICE GROWTH RATING 1..100 | 41 | 42 | |
P/E GROWTH RATING 1..100 | 43 | 27 | |
SEASONALITY SCORE 1..100 | 65 | 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 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 (18) in the Major Banks industry is somewhat better than the same rating for BNS (65). This means that RY’s stock grew somewhat faster than BNS’s over the last 12 months.
RY's SMR Rating (4) in the Major Banks industry is in the same range as BNS (5). This means that RY’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 RY (42). This means that BNS’s stock grew similarly to RY’s over the last 12 months.
RY's P/E Growth Rating (27) in the Major Banks industry is in the same range as BNS (43). This means that RY’s stock grew similarly to BNS’s over the last 12 months.
| BNS | RY | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 43% | 2 days ago 50% |
| Stochastic ODDS (%) | 2 days ago 51% | N/A |
| Momentum ODDS (%) | 6 days ago 45% | N/A |
| MACD ODDS (%) | 2 days ago 52% | N/A |
| TrendWeek ODDS (%) | 2 days ago 50% | 2 days ago 44% |
| TrendMonth ODDS (%) | 2 days ago 45% | 2 days ago 39% |
| Advances ODDS (%) | 6 days ago 50% | 2 days ago 47% |
| Declines ODDS (%) | N/A | 27 days ago 53% |
| BollingerBands ODDS (%) | 2 days ago 47% | 2 days ago 45% |
| Aroon ODDS (%) | 2 days ago 41% | 2 days ago 36% |
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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 72% 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.
RY and
Correlation & Price change
A.I.dvisor indicates that over the last year, RY has been closely correlated with CM. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if RY jumps, then CM could also see price increases.