Bank of Nova Scotia (NYSE:BNS) & Avidia Bancorp (NYSE:AVBC) Head to Head Analysis

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

Analyst Ratings

This is a summary of current ratings for Bank of Nova Scotia and Avidia Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Nova Scotia	0	2	4	1	2.86
Avidia Bancorp	1	0	0	1	2.50

Bank of Nova Scotia presently has a consensus price target of $117.00, indicating a potential upside of 25.87%. Given Bank of Nova Scotia’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Bank of Nova Scotia is more favorable than Avidia Bancorp.

Institutional and Insider Ownership

49.1% of Bank of Nova Scotia shares are owned by institutional investors. 3.4% of Avidia Bancorp shares are owned 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.

Profitability

This table compares Bank of Nova Scotia and Avidia Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Nova Scotia	13.91%	16.12%	0.72%
Avidia Bancorp	11.51%	4.62%	0.63%

Dividends

Bank of Nova Scotia pays an annual dividend of $3.21 per share and has a dividend yield of 3.5%. Avidia Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Bank of Nova Scotia pays out 58.0% of its earnings in the form of a dividend. Avidia Bancorp pays out 25.3% 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 raised its dividend for 14 consecutive years. Bank of Nova Scotia is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Nova Scotia	$52.70 billion	2.15	$5.56 billion	$5.53	16.81
Avidia Bancorp	$147.61 million	3.02	-$3.29 million	$0.95	23.46

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

Summary

Bank of Nova Scotia beats Avidia Bancorp on 12 of the 16 factors compared between the two stocks.

About Bank of Nova Scotia

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 through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. The company offers financial advice and solutions, and banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and retail automotive financing solutions. It also provides business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses. In addition, it 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 alternatives, and institutional funds. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.

About Avidia Bancorp

Avidia Bancorp Inc. is a chartered stock savings bank. It operates full-service banking offices principally in western Middlesex County and eastern Worcester County, in Massachusetts. Avidia Bancorp Inc. is based in HUDSON, Mass.