TD vs. RY, BMO, BNS, CM, NA, BN, MFC, SLF, IFC, and GWO
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), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), National Bank of Canada (NA), Brookfield (BN), Manulife Financial (MFC), Sun Life Financial (SLF), Intact Financial (IFC), and Great-West Lifeco (GWO). These companies are all part of the "financial services" sector.
Royal Bank of Canada (TSE:RY) and Toronto-Dominion Bank (TSE:TD) 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 profitability, earnings, dividends, media sentiment, analyst recommendations, institutional ownership, community ranking, risk and valuation.
Royal Bank of Canada pays an annual dividend of C$5.52 per share and has a dividend yield of 4.1%. Toronto-Dominion Bank pays an annual dividend of C$4.08 per share and has a dividend yield of 5.1%. Royal Bank of Canada pays out 51.3% of its earnings in the form of a dividend. Toronto-Dominion Bank pays out 64.5% 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.
Royal Bank of Canada received 178 more outperform votes than Toronto-Dominion Bank when rated by MarketBeat users. Likewise, 59.13% of users gave Royal Bank of Canada an outperform vote while only 55.17% of users gave Toronto-Dominion Bank an outperform vote.
Royal Bank of Canada has higher revenue and earnings than Toronto-Dominion Bank. Royal Bank of Canada is trading at a lower price-to-earnings ratio than Toronto-Dominion Bank, indicating that it is currently the more affordable of the two stocks.
Royal Bank of Canada has a net margin of 28.61% compared to Royal Bank of Canada's net margin of 23.86%. Toronto-Dominion Bank's return on equity of 13.66% beat Royal Bank of Canada's return on equity.
Royal Bank of Canada has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Toronto-Dominion Bank has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
In the previous week, Royal Bank of Canada had 1 more articles in the media than Toronto-Dominion Bank. MarketBeat recorded 3 mentions for Royal Bank of Canada and 2 mentions for Toronto-Dominion Bank. Toronto-Dominion Bank's average media sentiment score of 0.78 beat Royal Bank of Canada's score of 0.29 indicating that Royal Bank of Canada is being referred to more favorably in the media.
Royal Bank of Canada presently has a consensus target price of C$137.65, indicating a potential upside of 3.13%. Toronto-Dominion Bank has a consensus target price of C$91.02, indicating a potential upside of 12.70%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, analysts clearly believe Toronto-Dominion Bank is more favorable than Royal Bank of Canada.
51.2% of Royal Bank of Canada shares are held by institutional investors. Comparatively, 58.8% of Toronto-Dominion Bank 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Royal Bank of Canada beats Toronto-Dominion Bank on 13 of the 19 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 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.
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