Toronto Dominion Bank (TD) versus Its Competitors Critical Comparison

Toronto Dominion Bank (NYSE:TD) is one of 919 public companies in the “Banks” industry, but how does it compare to its rivals? We will compare Toronto Dominion Bank to similar businesses based on the strength of its risk, analyst recommendations, valuation, earnings, dividends, institutional ownership and profitability.

Risk and Volatility

Toronto Dominion Bank has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Toronto Dominion Bank’s rivals have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Dividends

Toronto Dominion Bank pays an annual dividend of $3.15 per share and has a dividend yield of 2.5%. Toronto Dominion Bank pays out 46.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.1% and pay out 28.9% of their earnings in the form of a dividend. Toronto Dominion Bank has increased its dividend for 12 consecutive years. Toronto Dominion Bank lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent ratings and target prices for Toronto Dominion Bank and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toronto Dominion Bank	0	4	3	2	2.78
Toronto Dominion Bank Competitors	7465	30196	27762	1465	2.35

Toronto Dominion Bank presently has a consensus target price of $148.00, suggesting a potential upside of 15.49%. As a group, “Banks” companies have a potential upside of 13.73%. Given Toronto Dominion Bank’s stronger consensus rating and higher probable upside, research analysts plainly believe Toronto Dominion Bank is more favorable than its rivals.

Insider & Institutional Ownership

52.4% of Toronto Dominion Bank shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 0.1% of Toronto Dominion Bank shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Toronto Dominion Bank and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toronto Dominion Bank	14.41%	14.88%	0.81%
Toronto Dominion Bank Competitors	15.64%	9.43%	0.93%

Valuation and Earnings

This table compares Toronto Dominion Bank and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Toronto Dominion Bank	$87.34 billion	$14.66 billion	19.04
Toronto Dominion Bank Competitors	$32.38 billion	$2.42 billion	17.48

Toronto Dominion Bank has higher revenue and earnings than its rivals. Toronto Dominion Bank is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Toronto Dominion Bank beats its rivals on 9 of the 15 factors compared.

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.