RY vs. TD, BMO, BNS, FFH, KEY, HUT, BNC, BLX, SII, and BITF
Should you be buying Royal Bank of Canada stock or one of its competitors? The main competitors of Royal Bank of Canada include Toronto-Dominion Bank (TD), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Fairfax Financial (FFH), Keyera (KEY), Hut 8 (HUT), Purpose Canadian Financial Income Fund Series ETF (BNC), Boralex (BLX), Sprott (SII), and Bitfarms (BITF). These companies are all part of the "banking" industry.
Royal Bank of Canada vs. Its Competitors
Toronto-Dominion Bank (TSE:TD) and Royal Bank of Canada (TSE:RY) are both large-cap financial services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, media sentiment, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Toronto-Dominion Bank has a beta of 0.871261, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 1.174198, meaning that its share price is 17% more volatile than the S&P 500.
Royal Bank of Canada has a net margin of 28.23% compared to Toronto-Dominion Bank's net margin of 15.80%. Royal Bank of Canada's return on equity of 13.27% beat Toronto-Dominion Bank's return on equity.
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.
In the previous week, Royal Bank of Canada had 6 more articles in the media than Toronto-Dominion Bank. MarketBeat recorded 10 mentions for Royal Bank of Canada and 4 mentions for Toronto-Dominion Bank. Royal Bank of Canada's average media sentiment score of 0.52 beat Toronto-Dominion Bank's score of 0.14 indicating that Royal Bank of Canada is being referred to more favorably in the news media.
Toronto-Dominion Bank currently has a consensus target price of C$100.17, indicating a potential downside of 8.91%. Royal Bank of Canada has a consensus target price of C$206.00, indicating a potential upside of 1.05%. Given Royal Bank of Canada's stronger consensus rating and higher probable upside, analysts clearly believe Royal Bank of Canada is more favorable than Toronto-Dominion Bank.
Toronto-Dominion Bank pays an annual dividend of C$4.17 per share and has a dividend yield of 3.8%. Royal Bank of Canada pays an annual dividend of C$5.92 per share and has a dividend yield of 2.9%. Toronto-Dominion Bank pays out 35.7% of its earnings in the form of a dividend. Royal Bank of Canada pays out 44.8% 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. Toronto-Dominion Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.
32.3% of Toronto-Dominion Bank shares are owned by institutional investors. Comparatively, 29.5% of Royal Bank of Canada shares are owned by institutional investors. 0.1% of Toronto-Dominion Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Royal Bank of Canada beats Toronto-Dominion Bank on 15 of the 19 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding RY and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of TSE 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.
Royal Bank of Canada Competitors List
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This page (TSE:RY) was last updated on 9/25/2025 by MarketBeat.com Staff
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