RY vs. TD, BMO, BNS, CM, NA, BN, MFC, IFC, SLF, and GWO
Should you be buying Royal Bank of Canada stock or one of its competitors? The main competitors of Royal Bank of Canada include Toronto-Dominion Bank (TD), 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), Intact Financial (IFC), Sun Life Financial (SLF), and Great-West Lifeco (GWO). These companies are all part of the "financial services" sector.
Toronto-Dominion Bank (TSE:TD) and Royal Bank of Canada (TSE:RY) are both large-cap financial services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, media sentiment, community ranking, institutional ownership, valuation, earnings, risk, profitability and dividends.
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.
Toronto-Dominion Bank currently has a consensus price target of C$88.32, suggesting a potential upside of 15.90%. Royal Bank of Canada has a consensus price target of C$143.38, suggesting a potential downside of 3.76%. Given Royal Bank of Canada's stronger consensus rating and higher probable upside, equities research analysts plainly believe Toronto-Dominion Bank is more favorable than Royal Bank of Canada.
Royal Bank of Canada received 178 more outperform votes than Toronto-Dominion Bank when rated by MarketBeat users. Likewise, 59.30% of users gave Royal Bank of Canada an outperform vote while only 55.15% of users gave Toronto-Dominion Bank an outperform vote.
Toronto-Dominion Bank has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
Toronto-Dominion Bank pays an annual dividend of C$4.08 per share and has a dividend yield of 5.4%. Royal Bank of Canada pays an annual dividend of C$5.52 per share and has a dividend yield of 3.7%. Toronto-Dominion Bank pays out 69.4% of its earnings in the form of a dividend. Royal Bank of Canada pays out 51.5% 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.
In the previous week, Toronto-Dominion Bank had 11 more articles in the media than Royal Bank of Canada. MarketBeat recorded 29 mentions for Toronto-Dominion Bank and 18 mentions for Royal Bank of Canada. Toronto-Dominion Bank's average media sentiment score of 1.08 beat Royal Bank of Canada's score of 0.12 indicating that Royal Bank of Canada is being referred to more favorably in the news media.
Royal Bank of Canada has a net margin of 28.61% compared to Royal Bank of Canada's net margin of 21.91%. Toronto-Dominion Bank's return on equity of 13.66% beat Royal Bank of Canada's return on equity.
60.1% of Toronto-Dominion Bank shares are held by institutional investors. Comparatively, 51.9% 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, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Royal Bank of Canada beats Toronto-Dominion Bank on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RY 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.
Royal Bank of Canada Competitors List
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