Comparing Toronto Dominion Bank (TD) and The Competition

Toronto Dominion Bank (NYSE: TD) is one of 297 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Toronto Dominion Bank to similar companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Institutional and Insider Ownership

48.8% of Toronto Dominion Bank shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Toronto Dominion Bank 23.09% 15.17% 0.86%
Toronto Dominion Bank Competitors 18.72% 8.33% 0.93%

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Toronto Dominion Bank $34.52 billion $7.95 billion 13.91
Toronto Dominion Bank Competitors $5.50 billion $827.87 million 398.01

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

Volatility and Risk

Toronto Dominion Bank has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Toronto Dominion Bank’s competitors have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.

Dividends

Toronto Dominion Bank pays an annual dividend of $1.86 per share and has a dividend yield of 3.2%. Toronto Dominion Bank pays out 44.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings for Toronto Dominion Bank and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toronto Dominion Bank 0 2 6 0 2.75
Toronto Dominion Bank Competitors 2212 8405 8378 348 2.35

Toronto Dominion Bank presently has a consensus price target of $77.67, indicating a potential upside of 32.58%. As a group, “Banks” companies have a potential upside of 1.03%. Given Toronto Dominion Bank’s stronger consensus rating and higher possible upside, equities analysts clearly believe Toronto Dominion Bank is more favorable than its competitors.

Summary

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

Toronto Dominion Bank Company Profile

Toronto-Dominion Bank (the Bank) is a Canada-based bank, which operates in the North America. It is an online financial services firm, with over 10.2 million online and mobile customers. Its segments include Canadian Retail, U.S. Retail, Wholesale Banking and Corporate. The Canadian Retail segment provides a range of financial products and services to customers in the Canadian personal and commercial banking businesses. The U.S. Retail segment consists of its retail and commercial banking operations operating under the brand TD Bank, and wealth management services in the United States. The Wholesale Banking segment provides a range of capital markets, investment banking, and corporate banking products and services, including underwriting and distribution of new debt and equity issues, providing advice on strategic acquisitions and divestitures, funding and investment needs of its clients. The Corporate segment provides centralized advice and counsel to its businesses.

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