LINKBANCORP (NASDAQ:LNKB – Get Free Report) and Bank of Nova Scotia (NYSE:BNS – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Volatility & Risk
LINKBANCORP has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Bank of Nova Scotia has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for LINKBANCORP and Bank of Nova Scotia, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LINKBANCORP | 0 | 0 | 2 | 0 | 3.00 |
| Bank of Nova Scotia | 0 | 5 | 4 | 0 | 2.44 |
Profitability
This table compares LINKBANCORP and Bank of Nova Scotia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LINKBANCORP | 15.64% | 9.89% | 0.95% |
| Bank of Nova Scotia | 10.20% | 11.56% | 0.61% |
Dividends
LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 4.4%. Bank of Nova Scotia pays an annual dividend of $3.05 per share and has a dividend yield of 5.7%. LINKBANCORP pays out 31.3% of its earnings in the form of a dividend. Bank of Nova Scotia pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank of Nova Scotia has increased 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.
Insider & Institutional Ownership
37.5% of LINKBANCORP shares are owned by institutional investors. Comparatively, 49.1% of Bank of Nova Scotia shares are owned by institutional investors. 37.5% of LINKBANCORP shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares LINKBANCORP and Bank of Nova Scotia”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LINKBANCORP | $110.14 million | 2.33 | $26.21 million | $0.96 | 7.15 |
| Bank of Nova Scotia | $35.13 billion | 1.89 | $5.70 billion | $3.41 | 15.64 |
Bank of Nova Scotia has higher revenue and earnings than LINKBANCORP. LINKBANCORP is trading at a lower price-to-earnings ratio than Bank of Nova Scotia, indicating that it is currently the more affordable of the two stocks.
Summary
Bank of Nova Scotia beats LINKBANCORP on 11 of the 17 factors compared between the two stocks.
About LINKBANCORP
LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, that provides various banking products and services to individuals, families, nonprofit, and business customers in Pennsylvania. Its deposit products include demand, saving, and money market accounts, as well as certificates of deposits. The company also offers commercial real estate, commercial business, commercial real estate construction, land development, residential real estate, home equity, consumer, agricultural, and municipal loans. It also provides online banking, mobile banking, direct and remote deposit, and cash management services. The company was incorporated in 2018 and is headquartered in Camp Hill, Pennsylvania.
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.
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