Canada's Big 5 Bank: Which Provides The Best Bang For The Buck?
Written by SmallCapPower.com
Today, we compare revenue growth and the forward Price to Earnings Per Share (P/EPS) metric to find the best bang-for-buck among the Canadian financial services industry. The P/EPS is a valuation multiple used to measure how much the share costs per dollar of earnings. Additionally, revenue growth is a good judgment of a company’s ability to grow or sustain dividends, as well as potential capital gains.
1. Toronto-Dominion Bank (NYSE: TD)
Banks
The Toronto-Dominion Bank is a Canada-based bank operating in North America.
- The Canadian Retail segment provides a range of financial products and services to customers in the Canadian personal and commercial banking businesses.
- The U.S. Retail segment consists of its retail and commercial banking operations operating under the brand TD Bank, and wealth management services in the United States.
- The Wholesale Banking segment provides a range of capital markets, investment banking, and corporate banking products and services, including underwriting and distribution of new debt and equity issues, providing advice on strategic acquisitions and divestitures, funding and investment needs of its clients.
- Market Cap: $92.0 billion Canadian
- Revenue Growth (NTM/LTM): -1%
- P/EPS (NTM): 12.1x
- Dividend Yield: 3.7%
2. Bank of Nova Scotia (NYSE: BNS)
Banks
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 Canadian Banking segment provides a suite of financial advice and banking solutions to retail, small business, commercial and wealth management customers in Canada;
- The International Banking segment provides a range of financial products, solutions and advice to retail and commercial customers in select regions outside of Canada;
- The Global Banking and Markets segment provides corporate banking, investment banking, capital markets and transaction banking solutions.
- Market Cap: $71.0 billion Canadian
- Revenue Growth (NTM/LTM): 1%
- P/EPS (NTM): 11.8x
- Dividend Yield: 4.0%
3. Royal Bank of Canada (NYSE: RY)
Banks
Royal Bank of Canada (RBC) is a diversified financial services company that provides personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. The Company serves personal, business, public sector and institutional clients in Canada, the United States and approximately 40 other countries. The Company’s business segments include Personal and Commercial Banking, Wealth Management, Insurance, Investor and Treasury Services, Capital Markets.
- Market Cap: $107.6 billion Canadian
- Revenue Growth (NTM/LTM): -2%
- P/EPS (NTM): 12.8x
- Dividend Yield: 3.7%
4. Bank of Montreal (NYSE: BMO)
Banks
The Bank of Montreal is a financial services provider that provides a range of personal and commercial banking, wealth management and investment banking products and services. The Bank conducts its business through three operating groups:
- Personal and Commercial Banking (P&C) business includes two retail and business banking operating segments:
- the Canadian Personal and Commercial Banking (Canadian P&C), and
- the United States Personal and Commercial Banking (U.S. P&C).
- The Bank’s Wealth Management business serves a range of client segments, from mainstream to ultra-high net worth and institutional, with an offering of wealth management products and services, including insurance.
- BMO Capital Markets is a North American-based financial services provider offering a range of products and services to corporate, institutional and government clients.
- Market Cap: $48.6 billion Canadian
- Revenue Growth (NTM/LTM): -3%
- P/EPS (NTM): 12.1x
- Dividend Yield: 3.7%
5. Canadian Imperial Bank of Commerce (NYSE: CM)
Banks
Canadian Imperial Bank of Commerce (CIBC) is a global financial institution that provides a range of financial products and services to approximately 11 million individual, small business, commercial, corporate and institutional clients in Canada and around the world. The Company operates through three segments:
- The Company’s Retail and Business Banking segment provides personal and business clients across Canada with financial advice, products and services in its banking centers or through remote channels, such as mobile advisors, telephone, online or mobile banking.
- The Company’s Wealth Management segment provides advice and investment solutions.
- The Company’s Capital Markets segment provides integrated credit and global markets products, investment banking advisory services and research to corporate, government and institutional clients around the world.
- Market Cap: $34.4 billion Canadian
- Revenue Growth (NTM/LTM): 0%
- P/EPS (NTM): 10.6x
- Dividend Yield: 4.6%
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