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 business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, media sentiment, profitability, community ranking, risk, earnings and dividends.

Does the MarketBeat Community favor TD or RY?

Royal Bank of Canada received 185 more outperform votes than Toronto-Dominion Bank when rated by MarketBeat users. Likewise, 58.26% of users gave Royal Bank of Canada an outperform vote while only 53.45% of users gave Toronto-Dominion Bank an outperform vote.

Company	Underperform	Outperform
Toronto-Dominion Bank	Outperform Votes 573 53.45%	Underperform Votes 499 46.55%
Royal Bank of Canada	Outperform Votes 758 58.26%	Underperform Votes 543 41.74%

Do institutionals and insiders have more ownership in TD or RY?

58.1% of Toronto-Dominion Bank shares are held by institutional investors. Comparatively, 52.5% of Royal Bank of Canada shares are held by institutional investors. 0.1% of Toronto-Dominion Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Which has more volatility & risk, TD or RY?

Toronto-Dominion Bank has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

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%

Which has preferable earnings and valuation, TD or RY?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toronto-Dominion Bank	C$56.16B	2.82	C$8.88B	C$5.05	17.86
Royal Bank of Canada	C$57.52B	4.35	C$16.24B	C$11.48	15.42

Does the media refer more to TD or RY?

In the previous week, Toronto-Dominion Bank had 1 more articles in the media than Royal Bank of Canada. MarketBeat recorded 8 mentions for Toronto-Dominion Bank and 7 mentions for Royal Bank of Canada. Toronto-Dominion Bank's average media sentiment score of 0.50 beat Royal Bank of Canada's score of 0.13 indicating that Toronto-Dominion Bank is being referred to more favorably in the media.

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

Do analysts prefer TD or RY?

Toronto-Dominion Bank presently has a consensus price target of C$88.75, suggesting a potential downside of 1.56%. Royal Bank of Canada has a consensus price target of C$179.83, suggesting a potential upside of 1.59%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, 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
Toronto-Dominion Bank	1 Sell rating(s)	7 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.38
Royal Bank of Canada	0 Sell rating(s)	1 Hold rating(s)	5 Buy rating(s)	5 Strong Buy rating(s)	3.36

Is TD or RY a better dividend stock?

Toronto-Dominion Bank pays an annual dividend of C$4.08 per share and has a dividend yield of 4.5%. Royal Bank of Canada pays an annual dividend of C$5.68 per share and has a dividend yield of 3.2%. Toronto-Dominion Bank pays out 80.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Royal Bank of Canada pays out 49.5% of its earnings in the form of a dividend.

Summary

Royal Bank of Canada beats Toronto-Dominion Bank on 15 of the 21 factors compared between the two stocks.