Comparing Bank of Nova Scotia (NYSE:BNS) & Atlantic Union Bankshares (NASDAQ:AUB)

Bank of Nova Scotia (NYSE:BNSGet Rating) and Atlantic Union Bankshares (NASDAQ:AUBGet Rating) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Dividends

Bank of Nova Scotia pays an annual dividend of $3.20 per share and has a dividend yield of 6.0%. Atlantic Union Bankshares pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. Bank of Nova Scotia pays out 48.6% of its earnings in the form of a dividend. Atlantic Union Bankshares pays out 42.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bank of Nova Scotia has increased its dividend for 1 consecutive years and Atlantic Union Bankshares has increased its dividend for 11 consecutive years.

Analyst Ratings

This is a summary of current recommendations for Bank of Nova Scotia and Atlantic Union Bankshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of Nova Scotia 0 9 4 0 2.31
Atlantic Union Bankshares 0 0 3 0 3.00

Bank of Nova Scotia currently has a consensus target price of $91.54, suggesting a potential upside of 70.68%. Atlantic Union Bankshares has a consensus target price of $46.17, suggesting a potential upside of 38.51%. Given Bank of Nova Scotia’s higher possible upside, research analysts plainly believe Bank of Nova Scotia is more favorable than Atlantic Union Bankshares.

Volatility and Risk

Bank of Nova Scotia has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Atlantic Union Bankshares has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Institutional & Insider Ownership

45.4% of Bank of Nova Scotia shares are owned by institutional investors. Comparatively, 70.0% of Atlantic Union Bankshares shares are owned by institutional investors. 1.0% of Atlantic Union Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Bank of Nova Scotia and Atlantic Union Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of Nova Scotia 24.43% 15.73% 0.84%
Atlantic Union Bankshares 31.89% 9.08% 1.18%

Earnings & Valuation

This table compares Bank of Nova Scotia and Atlantic Union Bankshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of Nova Scotia $31.20 billion 2.05 $7.65 billion $6.58 8.15
Atlantic Union Bankshares $718.16 million 3.48 $263.92 million $2.86 11.65

Bank of Nova Scotia has higher revenue and earnings than Atlantic Union Bankshares. Bank of Nova Scotia is trading at a lower price-to-earnings ratio than Atlantic Union Bankshares, indicating that it is currently the more affordable of the two stocks.

Summary

Atlantic Union Bankshares beats Bank of Nova Scotia on 10 of the 17 factors compared between the two stocks.

About Bank of Nova Scotia

(Get Rating)

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates in four segments: Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets. The company offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses, including automotive financing solutions to dealers and their customers. It also provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternative funds, and institutional funds. In addition, the company offers international banking services for retail, corporate, and commercial customers; and lending and transaction, investment banking advisory, and capital markets access services to corporate customers. Further, it provides online, mobile, and telephone banking services. The company operates a network of 954 branches and approximately 3,766 automated banking machines in Canada; and approximately 1,300 branches and a network of contact and support center internationally. The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.

About Atlantic Union Bankshares

(Get Rating)

Atlantic Union Bankshares Corporation operates as the holding company for Atlantic Union Bank that provides banking and related financial services to consumers and businesses. The company accepts various deposit products, including checking, savings, NOW, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes. In addition, the company offers credit cards, automated teller machine (ATM) services, mobile and internet banking services, and online bill payment services, as well as financial planning, trust, and wealth management services. Further, it provides securities, brokerage, and investment advisory products and services; and originates and sells residential loan products in the secondary market. As of February 25, 2022, it operated 130 branches and approximately 150 ATMs in Virginia, Maryland, and North Carolina. The company was formerly known as Union Bankshares Corporation and changed its name to Atlantic Union Bankshares Corporation in May 2019. Atlantic Union Bankshares Corporation was founded in 1902 and is headquartered in Richmond, Virginia.

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