Toronto-Dominion Bank (TD) Competitors

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

Do analysts recommend TD or RY?

Toronto-Dominion Bank presently has a consensus target price of C$105.50, indicating a potential downside of 6.85%. Royal Bank of Canada has a consensus target price of C$206.00, indicating a potential upside of 0.46%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, analysts plainly believe Royal Bank of Canada is more favorable than Toronto-Dominion Bank.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toronto-Dominion Bank	1 Sell rating(s)	3 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.44
Royal Bank of Canada	0 Sell rating(s)	5 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	2.64

Is TD or RY 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
Toronto-Dominion Bank	15.80%	7.84%	0.43%
Royal Bank of Canada	28.23%	13.27%	0.80%

Does the media prefer TD or RY?

In the previous week, Toronto-Dominion Bank had 20 more articles in the media than Royal Bank of Canada. MarketBeat recorded 23 mentions for Toronto-Dominion Bank and 3 mentions for Royal Bank of Canada. Royal Bank of Canada's average media sentiment score of 0.51 beat Toronto-Dominion Bank's score of 0.34 indicating that Royal Bank of Canada is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Toronto-Dominion Bank	5 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Neutral
Royal Bank of Canada	0 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility & risk, TD or RY?

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.

Which has higher earnings and valuation, TD or RY?

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
Toronto-Dominion Bank	C$60.13B	3.30	C$8.88B	C$11.68	9.70
Royal Bank of Canada	C$64.40B	4.49	C$16.24B	C$13.22	15.51

Do institutionals and insiders hold more shares of TD or RY?

32.4% of Toronto-Dominion Bank shares are held by institutional investors. Comparatively, 29.6% of Royal Bank of Canada shares are held by institutional investors. 0.1% of Toronto-Dominion Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Is TD or RY a better dividend stock?

Toronto-Dominion Bank pays an annual dividend of C$4.17 per share and has a dividend yield of 3.7%. 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.

Summary

Royal Bank of Canada beats Toronto-Dominion Bank on 13 of the 18 factors compared between the two stocks.