TD vs. RY, MUFG, HDB, IBN, SMFG, SAN, BMO, BBVA, ING, and CM
Should you be buying Toronto-Dominion Bank stock or one of its competitors? The main competitors of Toronto-Dominion Bank include Royal Bank of Canada (RY), Mitsubishi UFJ Financial Group (MUFG), HDFC Bank (HDB), ICICI Bank (IBN), Sumitomo Mitsui Financial Group (SMFG), Banco Santander (SAN), Bank of Montreal (BMO), Banco Bilbao Vizcaya Argentaria (BBVA), ING Groep (ING), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "commercial banks, not elsewhere classified" industry.
Toronto-Dominion Bank (NYSE:TD) and Royal Bank of Canada (NYSE:RY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, media sentiment, profitability, institutional ownership, community ranking, analyst recommendations and risk.
Royal Bank of Canada has a net margin of 12.12% compared to Toronto-Dominion Bank's net margin of 9.96%. Royal Bank of Canada's return on equity of 14.87% beat Toronto-Dominion Bank's return on equity.
Royal Bank of Canada received 181 more outperform votes than Toronto-Dominion Bank when rated by MarketBeat users. Likewise, 55.78% of users gave Royal Bank of Canada an outperform vote while only 54.89% of users gave Toronto-Dominion Bank an outperform vote.
Royal Bank of Canada has higher revenue and earnings than Toronto-Dominion Bank. Toronto-Dominion Bank is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.
Toronto-Dominion Bank pays an annual dividend of $3.02 per share and has a dividend yield of 5.4%. Royal Bank of Canada pays an annual dividend of $4.08 per share and has a dividend yield of 3.8%. Toronto-Dominion Bank pays out 68.6% of its earnings in the form of a dividend. Royal Bank of Canada pays out 50.6% 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.
In the previous week, Royal Bank of Canada had 16 more articles in the media than Toronto-Dominion Bank. MarketBeat recorded 30 mentions for Royal Bank of Canada and 14 mentions for Toronto-Dominion Bank. Toronto-Dominion Bank's average media sentiment score of 0.91 beat Royal Bank of Canada's score of 0.46 indicating that Toronto-Dominion Bank is being referred to more favorably in the media.
Toronto-Dominion Bank presently has a consensus target price of $88.00, suggesting a potential upside of 58.30%. Royal Bank of Canada has a consensus target price of $133.25, suggesting a potential upside of 25.20%. Given Toronto-Dominion Bank's higher possible upside, equities research analysts clearly believe Toronto-Dominion Bank is more favorable than Royal Bank of Canada.
52.4% of Toronto-Dominion Bank shares are held by institutional investors. Comparatively, 45.3% of Royal Bank of Canada shares are held by institutional investors. 0.1% of Toronto-Dominion Bank shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Toronto-Dominion Bank has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Summary
Royal Bank of Canada beats Toronto-Dominion Bank on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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