The S&P/TSX Composite Index was down 268 points in mid-afternoon trading on Thursday, September
29. The S&P/TSX Capped Financials Index was down 1.41% on the same day. Today, I want to zero-in on
two of the top regional bank stocks in Canada. Which is the better buy? Let’s find out!
Canadian Western Bank (TSX:CWB) is an Edmonton-based regional bank stock. Its shares have plunged
38% in 2022 at the time of this writing. The stock is down 39% from the previous year. In Q3 fiscal 2022,
the bank delivered revenue growth of 3% to $272 million. Meanwhile, branch-raised deposits climbed
9% to $20.4 billion.
This bank stock possesses a very favourable price-to-earnings ratio of 6.1. It offers a quarterly dividend
of $0.31 per share. That represents a strong 5.5% yield.
Laurentian Bank (TSX:LB) is a Montreal-based regional bank. Shares of Laurentian have tumbled 26% in
the year-to-date period. That has pushed the stock into negative territory in the year-over-year period.
The bank reported net income of $55.9 million or $1.18 per diluted share in the third quarter of fiscal
2022 – down 10% and 11%, respectively, compared to the prior year. Meanwhile, adjusted net income
in the year-to-date period increased 10% or 11% on a per share basis to $179 million or $3.88. Shares of
Laurentian last had a solid P/E ratio of 23. It offers a quarterly dividend of $0.45 per share, representing
a very strong 5.9% yield.
I’m rolling with Canadian Western for its very attractive value at the time of this writing. Meanwhile,
these banks stocks are largely even on the dividend front.
