TD vs. RY, MUFG, HDB, IBN, SMFG, SAN, BMO, BBVA, ING, and CM
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), Mitsubishi UFJ Financial Group (MUFG), HDFC Bank (HDB), ICICI Bank (IBN), Sumitomo Mitsui Financial Group (SMFG), Banco Santander (SAN), Bank of Montreal (BMO), Banco Bilbao Vizcaya Argentaria (BBVA), ING Groep (ING), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "commercial banks, not elsewhere classified" industry.
Royal Bank of Canada (NYSE:RY) and Toronto-Dominion Bank (NYSE:TD) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their media sentiment, analyst recommendations, institutional ownership, earnings, valuation, community ranking, profitability, risk and dividends.
Royal Bank of Canada has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Toronto-Dominion Bank has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
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.
Royal Bank of Canada pays an annual dividend of $4.08 per share and has a dividend yield of 3.7%. Toronto-Dominion Bank pays an annual dividend of $3.02 per share and has a dividend yield of 5.4%. Royal Bank of Canada pays out 50.6% of its earnings in the form of a dividend. Toronto-Dominion Bank pays out 68.6% 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 has increased its dividend for 14 consecutive years and Toronto-Dominion Bank has increased its dividend for 10 consecutive years.
In the previous week, Toronto-Dominion Bank had 8 more articles in the media than Royal Bank of Canada. MarketBeat recorded 25 mentions for Toronto-Dominion Bank and 17 mentions for Royal Bank of Canada. Toronto-Dominion Bank's average media sentiment score of 1.23 beat Royal Bank of Canada's score of 0.21 indicating that Royal Bank of Canada is being referred to more favorably in the media.
Royal Bank of Canada currently has a consensus target price of $137.67, suggesting a potential upside of 25.99%. Toronto-Dominion Bank has a consensus target price of $88.00, suggesting a potential upside of 57.37%. Given Royal Bank of Canada's higher possible upside, analysts plainly believe Toronto-Dominion Bank is more favorable than Royal Bank of Canada.
Royal Bank of Canada has a net margin of 12.12% compared to Royal Bank of Canada's net margin of 9.96%. Toronto-Dominion Bank's return on equity of 14.98% beat Royal Bank of Canada's return on equity.
Royal Bank of Canada received 179 more outperform votes than Toronto-Dominion Bank when rated by MarketBeat users. Likewise, 55.76% of users gave Royal Bank of Canada an outperform vote while only 54.89% of users gave Toronto-Dominion Bank an outperform vote.
45.3% of Royal Bank of Canada shares are held by institutional investors. Comparatively, 52.4% of Toronto-Dominion Bank 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, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Royal Bank of Canada beats Toronto-Dominion Bank on 16 of the 21 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 NYSE 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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