The Toronto-Dominion Bank (NYSE:TD) and Summit State Bank (NASDAQ:SSBI) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
Dividends
The Toronto-Dominion Bank pays an annual dividend of $2.48 per share and has a dividend yield of 3.8%. Summit State Bank pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. The Toronto-Dominion Bank pays out 62.2% of its earnings in the form of a dividend. The Toronto-Dominion Bank has raised its dividend for 1 consecutive years and Summit State Bank has raised its dividend for 1 consecutive years.
Profitability
This table compares The Toronto-Dominion Bank and Summit State Bank's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The Toronto-Dominion Bank | 22.23% | 11.63% | 0.62% |
Summit State Bank | 24.21% | N/A | N/A |
Risk and Volatility
The Toronto-Dominion Bank has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Summit State Bank has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for The Toronto-Dominion Bank and Summit State Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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The Toronto-Dominion Bank | 4 | 5 | 2 | 0 | 1.82 |
Summit State Bank | 0 | 0 | 0 | 0 | N/A |
The Toronto-Dominion Bank currently has a consensus price target of $76.8182, indicating a potential upside of 18.25%. Given The Toronto-Dominion Bank's higher possible upside, research analysts clearly believe The Toronto-Dominion Bank is more favorable than Summit State Bank.
Institutional and Insider Ownership
48.0% of The Toronto-Dominion Bank shares are held by institutional investors. Comparatively, 14.3% of Summit State Bank shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares The Toronto-Dominion Bank and Summit State Bank's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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The Toronto-Dominion Bank | $39.92 billion | 2.96 | $8.85 billion | $3.99 | 16.28 |
Summit State Bank | $32.66 million | 3.07 | $6.48 million | N/A | N/A |
The Toronto-Dominion Bank has higher revenue and earnings than Summit State Bank.
Summary
The Toronto-Dominion Bank beats Summit State Bank on 10 of the 13 factors compared between the two stocks.