NA vs. TD, BMO, BNS, CM, RY, BN, MFC, IFC, SLF, and GWO
Should you be buying National Bank of Canada stock or one of its competitors? The main competitors of National Bank of Canada include Toronto-Dominion Bank (TD), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), Royal Bank of Canada (RY), 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 National Bank of Canada (TSE:NA) are both large-cap financial services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, community ranking, analyst recommendations, valuation, institutional ownership, dividends, risk and media sentiment.
60.1% of Toronto-Dominion Bank shares are held by institutional investors. Comparatively, 34.7% of National Bank of Canada shares are held by institutional investors. 0.1% of Toronto-Dominion Bank shares are held by company insiders. Comparatively, 0.2% of National Bank of Canada shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
National Bank of Canada received 77 more outperform votes than Toronto-Dominion Bank when rated by MarketBeat users. However, 55.15% of users gave Toronto-Dominion Bank an outperform vote while only 51.19% of users gave National Bank of Canada an outperform vote.
Toronto-Dominion Bank currently has a consensus price target of C$88.32, suggesting a potential upside of 15.90%. National Bank of Canada has a consensus price target of C$115.17, suggesting a potential downside of 1.14%. Given National Bank of Canada's stronger consensus rating and higher probable upside, analysts clearly believe Toronto-Dominion Bank is more favorable than National Bank of Canada.
Toronto-Dominion Bank has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, National Bank of Canada has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.
Toronto-Dominion Bank has higher revenue and earnings than National Bank of Canada. National 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.
National Bank of Canada has a net margin of 34.22% compared to National Bank of Canada's net margin of 21.91%. Toronto-Dominion Bank's return on equity of 14.73% beat National Bank of Canada's return on equity.
Toronto-Dominion Bank pays an annual dividend of C$4.08 per share and has a dividend yield of 5.4%. National Bank of Canada pays an annual dividend of C$4.24 per share and has a dividend yield of 3.6%. Toronto-Dominion Bank pays out 69.4% of its earnings in the form of a dividend. National Bank of Canada pays out 44.6% 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.
In the previous week, National Bank of Canada had 16 more articles in the media than Toronto-Dominion Bank. MarketBeat recorded 32 mentions for National Bank of Canada and 16 mentions for Toronto-Dominion Bank. Toronto-Dominion Bank's average media sentiment score of 0.66 beat National Bank of Canada's score of -0.06 indicating that National Bank of Canada is being referred to more favorably in the news media.
Summary
National Bank of Canada beats Toronto-Dominion Bank on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NA 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.
National Bank of Canada Competitors List
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