Toronto-Dominion Bank (TD) Competitors

Royal Bank of Canada (TSE:RY) and Toronto-Dominion Bank (TSE:TD) are both large-cap financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership, media sentiment and dividends.

Do analysts prefer RY or TD?

Royal Bank of Canada currently has a consensus target price of C$206.00, suggesting a potential upside of 3.07%. Toronto-Dominion Bank has a consensus target price of C$100.17, suggesting a potential downside of 6.20%. Given Royal Bank of Canada's stronger consensus rating and higher probable upside, equities research analysts clearly believe Royal Bank of Canada is more favorable than Toronto-Dominion Bank.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Bank of Canada	0 Sell rating(s)	5 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.50
Toronto-Dominion Bank	1 Sell rating(s)	4 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.33

Does the media refer more to RY or TD?

In the previous week, Royal Bank of Canada had 3 more articles in the media than Toronto-Dominion Bank. MarketBeat recorded 5 mentions for Royal Bank of Canada and 2 mentions for Toronto-Dominion Bank. Royal Bank of Canada's average media sentiment score of 0.24 beat Toronto-Dominion Bank's score of 0.18 indicating that Royal Bank of Canada is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Royal Bank of Canada	1 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Toronto-Dominion Bank	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do insiders & institutionals believe in RY or TD?

29.4% of Royal Bank of Canada shares are owned by institutional investors. Comparatively, 32.3% of Toronto-Dominion Bank shares are owned by institutional investors. 0.1% of Toronto-Dominion Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Is RY or TD more profitable?

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.

Company	Net Margins	Return on Equity	Return on Assets
Royal Bank of Canada	28.23%	13.27%	0.80%
Toronto-Dominion Bank	15.80%	7.84%	0.43%

Which has preferable valuation and earnings, RY or TD?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Bank of Canada	C$64.40B	4.38	C$16.24B	C$13.22	15.12
Toronto-Dominion Bank	C$60.13B	3.11	C$8.88B	C$11.68	9.14

Is RY or TD a better dividend stock?

Royal Bank of Canada pays an annual dividend of C$5.92 per share and has a dividend yield of 3.0%. Toronto-Dominion Bank pays an annual dividend of C$4.17 per share and has a dividend yield of 3.9%. Royal Bank of Canada pays out 44.8% of its earnings in the form of a dividend. Toronto-Dominion Bank pays out 35.7% 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.

Which has more risk & volatility, RY or TD?

Royal Bank of Canada has a beta of 1.174198, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Toronto-Dominion Bank has a beta of 0.871261, meaning that its share price is 13% less volatile than the S&P 500.

Summary

Royal Bank of Canada beats Toronto-Dominion Bank on 14 of the 18 factors compared between the two stocks.