BMO vs. RY

Last updated Jun 3, 2026

BMO (Bank of Montreal) and RY (Royal Bank of Canada) are both stocks. Both operate in the Banks - Diversified industry within the Financial Services sector. Over the past 10 years, BMO returned 15.06%/yr vs 16.43%/yr for RY. A 0.76 correlation means they provide meaningful diversification when combined.

Performance

BMO vs. RY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Bank of Montreal (BMO) and Royal Bank of Canada (RY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BMO achieves a 29.59% return, which is significantly higher than RY's 13.68% return. Over the past 10 years, BMO has underperformed RY with an annualized return of 15.06%, while RY has yielded a comparatively higher 16.43% annualized return.

BMO

• 1D: 1.70%
• 1M: 8.45%
• YTD: 29.59%
• 6M: 33.76%
• 1Y: 59.06%
• 3Y*: 29.84%
• 5Y*: 14.35%
• 10Y*: 15.06%

RY

• 1D: 1.36%
• 1M: 6.46%
• YTD: 13.68%
• 6M: 25.50%
• 1Y: 54.00%
• 3Y*: 32.28%
• 5Y*: 17.20%
• 10Y*: 16.43%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BMO vs. RY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BMO Bank of Montreal	29.59%	39.59%	2.98%	15.24%	-12.41%	48.15%	3.34%	23.51%	-15.02%	16.63%
RY Royal Bank of Canada	13.68%	46.29%	23.80%	12.72%	-8.00%	34.11%	8.42%	20.17%	-12.88%	24.95%

Correlation

The correlation between BMO and RY is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Oct 17, 1995	0.76

The correlation between BMO and RY has been stable across timeframes, ranging from 0.70 to 0.79 - a consistent structural relationship.

Fundamentals

Market Cap BMO : $85.73B RY : $196.37B
EPS BMO : $14.56 RY : $18.17
PE Ratio BMO : 11.36 RY : 10.52
PEG Ratio BMO : 0.52 RY : 1.52
PS Ratio BMO : 1.43 RY : 1.68
PB Ratio BMO : 1.10 RY : 1.52
Total Revenue (TTM) BMO : $77.05B RY : $138.99B
Gross Profit (TTM) BMO : $34.51B RY : $65.64B
EBITDA (TTM) BMO : $14.21B RY : $30.01B

Return for Risk

BMO vs. RY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BMO

BMO Risk / Return Rank: 94
BMO Sharpe Ratio Rank: 95
BMO Sortino Ratio Rank: 95
BMO Omega Ratio Rank: 94
BMO Calmar Ratio Rank: 91
BMO Martin Ratio Rank: 95

RY

RY Risk / Return Rank: 81
RY Sharpe Ratio Rank: 74
RY Sortino Ratio Rank: 73
RY Omega Ratio Rank: 95
RY Calmar Ratio Rank: 74
RY Martin Ratio Rank: 92

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BMO vs. RY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Bank of Montreal (BMO) and Royal Bank of Canada (RY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BMO	RY	Difference
Sharpe ratio Return per unit of total volatility	3.16	1.11	+2.05
Sortino ratio Return per unit of downside risk	4.11	1.92	+2.19
Omega ratio Gain probability vs. loss probability	1.54	1.57	-0.03
Calmar ratio Return relative to maximum drawdown	5.15	2.01	+3.14
Martin ratio Return relative to average drawdown	19.15	13.85	+5.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BMO vs. RY - Sharpe Ratio Comparison

The current BMO Sharpe Ratio is 3.16, which is higher than the RY Sharpe Ratio of 1.11. The chart below compares the historical Sharpe Ratios of BMO and RY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BMO	RY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.16	1.11	+2.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.63	+0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.67	-0.03
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.61	-0.03

Drawdowns

BMO vs. RY - Drawdown Comparison

The maximum BMO drawdown since its inception was -68.17%, which is greater than RY's maximum drawdown of -62.90%. Use the drawdown chart below to compare losses from any high point for BMO and RY.

Drawdown Indicators

	BMO	RY	Difference
Max Drawdown Largest peak-to-trough decline	-68.17%	-62.90%	-5.27%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-27.63%	+16.01%
Max Drawdown (3Y) Largest decline over 3 years	-18.56%	-27.63%	+9.07%
Max Drawdown (5Y) Largest decline over 5 years	-33.94%	-28.36%	-5.58%
Max Drawdown (10Y) Largest decline over 10 years	-50.97%	-39.95%	-11.02%
Current Drawdown Current decline from peak	0.00%	-26.64%	+26.64%
Average Drawdown Average peak-to-trough decline	-11.43%	-9.34%	-2.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.12%	4.00%	-0.88%

Volatility

BMO vs. RY - Volatility Comparison

The current volatility for Bank of Montreal (BMO) is 5.48%, while Royal Bank of Canada (RY) has a volatility of 46.47%. This indicates that BMO experiences smaller price fluctuations and is considered to be less risky than RY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BMO	RY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.48%	46.47%	-40.99%
Volatility (6M) Calculated over the trailing 6-month period	15.60%	46.78%	-31.18%
Volatility (1Y) Calculated over the trailing 1-year period	18.80%	48.96%	-30.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.31%	27.54%	-6.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.66%	24.66%	-1.00%

Dividends

BMO vs. RY - Dividend Comparison

BMO's dividend yield for the trailing twelve months is around 2.91%, more than RY's 2.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BMO Bank of Montreal	2.91%	3.55%	4.60%	4.76%	4.62%	3.95%	4.15%	3.96%	4.78%	4.45%	4.73%	5.74%
RY Royal Bank of Canada	2.42%	2.54%	3.39%	4.29%	4.07%	3.24%	3.88%	3.88%	4.27%	3.22%	3.95%	5.41%

Financials

BMO vs. RY - Profitability Comparison

The chart below illustrates the profitability comparison between Bank of Montreal and Royal Bank of Canada over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

BMO - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Bank of Montreal reported a gross profit of 8.78B and revenue of 19.26B. Therefore, the gross margin over that period was 45.6%.

RY - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Royal Bank of Canada reported a gross profit of 16.51B and revenue of 33.93B. Therefore, the gross margin over that period was 48.7%.

BMO - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Bank of Montreal reported an operating income of 3.50B and revenue of 19.26B, resulting in an operating margin of 18.2%.

RY - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Royal Bank of Canada reported an operating income of 7.10B and revenue of 33.93B, resulting in an operating margin of 20.9%.

BMO - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Bank of Montreal reported a net income of 2.63B and revenue of 19.26B, resulting in a net margin of 13.6%.

RY - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Royal Bank of Canada reported a net income of 5.51B and revenue of 33.93B, resulting in a net margin of 16.2%.

Frequently Asked Questions

Can I hold both BMO and RY in my portfolio?

BMO and RY have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BMO or RY?

RY has higher volatility (46.47%) compared to BMO (5.48%). In terms of maximum drawdown, BMO dropped -68.17% vs RY's -62.90%.

Which has better risk-adjusted returns?

BMO currently has the higher Sharpe Ratio (3.16 vs 1.11), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.