Financial Contrast: Toronto Dominion Bank (NYSE:TD) versus China CITIC Bank (OTCMKTS:CHCJY)

Toronto Dominion Bank (NYSE:TD) and China CITIC Bank (OTCMKTS:CHCJY) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Toronto Dominion Bank and China CITIC Bank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toronto Dominion Bank	$87.34 billion	2.26	$14.66 billion	$6.41	18.62
China CITIC Bank	$49.07 billion	0.97	$9.82 billion	$3.38	5.77

Toronto Dominion Bank has higher revenue and earnings than China CITIC Bank. China CITIC Bank 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.

Institutional and Insider Ownership

52.4% 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, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Toronto Dominion Bank and China CITIC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toronto Dominion Bank	13.20%	14.83%	0.82%
China CITIC Bank	20.39%	8.44%	0.71%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Toronto Dominion Bank and China CITIC Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toronto Dominion Bank	0	3	5	1	2.78
China CITIC Bank	0	1	0	0	2.00

Toronto Dominion Bank presently has a consensus price target of $156.00, indicating a potential upside of 30.67%. Given Toronto Dominion Bank’s stronger consensus rating and higher probable upside, equities analysts plainly believe Toronto Dominion Bank is more favorable than China CITIC Bank.

Dividends

Toronto Dominion Bank pays an annual dividend of $3.11 per share and has a dividend yield of 2.6%. China CITIC Bank pays an annual dividend of $0.87 per share and has a dividend yield of 4.5%. Toronto Dominion Bank pays out 48.5% of its earnings in the form of a dividend. China CITIC Bank pays out 25.7% 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. Toronto Dominion Bank has increased its dividend for 12 consecutive years. China CITIC Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Toronto Dominion Bank has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, China CITIC Bank has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Summary

Toronto Dominion Bank beats China CITIC Bank on 15 of the 18 factors compared between the two stocks.

About Toronto Dominion Bank

The Toronto-Dominion Bank, together with its subsidiaries, provides various financial products and services in Canada, the United States, and internationally. It operates through four segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. The company offers personal deposits, such as chequing, savings, and investment products; financing, investment, cash management, international trade, and day-to-day banking services to businesses; and financing options to customers at point of sale for automotive and recreational vehicle purchases. It also provides credit cards and payments; real estate secured lending, auto finance, and consumer lending services; point-of-sale payment solutions for large and small businesses; wealth and asset management products, and advice to retail and institutional clients through direct investing, advice-based, and asset management businesses; and property and casualty insurance, as well as life and health insurance products. The company also provides capital markets, and corporate and investment banking products and services, including underwriting and distribution of new debt and equity issues; advice on strategic acquisitions and divestitures; and trading, funding, and investment services to corporations, governments, and institutions. It offers its products and services under the TD Bank and America's Most Convenient Bank brand names. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada.

About China CITIC Bank

China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.