Bank of Nova Scotia (The) (NYSE: BNS) and NewBridge Bancorp (NASDAQ:NBBC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of current ratings and target prices for Bank of Nova Scotia (The) and NewBridge Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of Nova Scotia (The) 0 1 10 0 2.91
NewBridge Bancorp 0 0 1 0 3.00

Bank of Nova Scotia (The) currently has a consensus target price of $75.38, suggesting a potential upside of 23.10%. NewBridge Bancorp has a consensus target price of $9.00, suggesting a potential downside of 17.66%. Given Bank of Nova Scotia (The)’s higher possible upside, equities analysts clearly believe Bank of Nova Scotia (The) is more favorable than NewBridge Bancorp.

Valuation and Earnings

This table compares Bank of Nova Scotia (The) and NewBridge Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bank of Nova Scotia (The) $19.36 billion 3.80 $5.76 billion $4.79 12.78
NewBridge Bancorp N/A N/A N/A N/A N/A

Bank of Nova Scotia (The) has higher revenue and earnings than NewBridge Bancorp.

Profitability

This table compares Bank of Nova Scotia (The) and NewBridge Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of Nova Scotia (The) 22.17% 14.45% 0.87%
NewBridge Bancorp 12.68% 5.25% 0.49%

Insider & Institutional Ownership

50.1% of Bank of Nova Scotia (The) shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Bank of Nova Scotia (The) pays an annual dividend of $2.25 per share and has a dividend yield of 3.7%. NewBridge Bancorp does not pay a dividend. Bank of Nova Scotia (The) pays out 47.0% of its earnings in the form of a dividend.

Summary

Bank of Nova Scotia (The) beats NewBridge Bancorp on 8 of the 10 factors compared between the two stocks.

Bank of Nova Scotia (The) Company Profile

The Bank of Nova Scotia is an international bank and a financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. The Bank offers a range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. Its segments include Canadian Banking, which provides a suite of financial advice and banking solutions to retail, small business, commercial and wealth management customers in Canada; International Banking, which provides a range of financial products, solutions and advice to retail and commercial customers in select regions outside of Canada; Global Banking and Markets, which provides corporate banking, investment banking, capital markets and transaction banking solutions, and Other, which represents smaller operating segments, including Group Treasury.

NewBridge Bancorp Company Profile

NewBridge Bancorp is a bank holding company. The Bank, through its banking subsidiary, NewBridge Bank and its branch network, provides a range of banking products to small to medium-sized businesses and retail clients in its market areas. The Bank provides services, which include interest-bearing and noninterest-bearing demand deposit accounts, certificates of deposits, individual retirement accounts, overdraft protection, personal and corporate trust services, safe deposit boxes, online banking, corporate cash management, brokerage, financial planning and asset management, and secured and unsecured loans. The Bank’s deposit products include noninterest-bearing checking accounts, interest-bearing checking accounts, money market accounts, certificates of deposit and individual retirement accounts. Its primary lending products are commercial, real estate and consumer loans.

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