Bank of Nova Scotia (The) (NYSE: BNS) is one of 323 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Bank of Nova Scotia (The) to similar companies based on the strength of its valuation, institutional ownership, dividends, profitability, risk, earnings and analyst recommendations.

Dividends

Bank of Nova Scotia (The) pays an annual dividend of $2.25 per share and has a dividend yield of 3.5%. Bank of Nova Scotia (The) pays out 46.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.2% and pay out 36.7% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Bank of Nova Scotia (The) 22.26% 14.54% 0.89%
Bank of Nova Scotia (The) Competitors 18.62% 8.78% 0.93%

Analyst Ratings

This is a summary of recent ratings for Bank of Nova Scotia (The) and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of Nova Scotia (The) 0 1 9 0 2.90
Bank of Nova Scotia (The) Competitors 2602 8875 8447 392 2.33

Bank of Nova Scotia (The) currently has a consensus target price of $86.75, indicating a potential upside of 36.76%. As a group, “Banks” companies have a potential downside of 2.38%. Given Bank of Nova Scotia (The)’s stronger consensus rating and higher probable upside, analysts plainly believe Bank of Nova Scotia (The) is more favorable than its rivals.

Insider & Institutional Ownership

45.3% of Bank of Nova Scotia (The) shares are held by institutional investors. Comparatively, 53.2% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Bank of Nova Scotia (The) has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Bank of Nova Scotia (The)’s rivals have a beta of 0.78, suggesting that their average share price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bank of Nova Scotia (The) and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Bank of Nova Scotia (The) $19.84 billion N/A 13.05
Bank of Nova Scotia (The) Competitors N/A N/A 17.67

Bank of Nova Scotia (The) is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Bank of Nova Scotia (The) beats its rivals on 8 of the 14 factors compared.

About Bank of Nova Scotia (The)

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.

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