Head-To-Head Survey: Toronto Dominion Bank (TD) vs. The Competition

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

Risk and Volatility

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

Dividends

Toronto Dominion Bank pays an annual dividend of $3.14 per share and has a dividend yield of 2.5%. Toronto Dominion Bank pays out 46.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.0% and pay out 28.9% of their earnings in the form of a dividend. Toronto Dominion Bank has raised its dividend for 12 consecutive years. Toronto Dominion Bank lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations 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	4	3	2	2.78
Toronto Dominion Bank Competitors	7484	30230	27811	1478	2.35

Toronto Dominion Bank presently has a consensus target price of $148.00, suggesting a potential upside of 18.96%. As a group, “Banks” companies have a potential upside of 14.54%. Given Toronto Dominion Bank’s stronger consensus rating and higher probable upside, research analysts plainly believe Toronto Dominion Bank is more favorable than its competitors.

Earnings & Valuation

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	$65.07 billion	$14.66 billion	18.49
Toronto Dominion Bank Competitors	$222.42 billion	$2.42 billion	21.21

Toronto Dominion Bank’s competitors have higher revenue, but lower earnings than Toronto Dominion Bank. 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.

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	14.41%	14.88%	0.81%
Toronto Dominion Bank Competitors	15.65%	9.44%	0.93%

Institutional & Insider Ownership

52.4% of Toronto Dominion Bank shares are held by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are held by institutional investors. 0.1% of Toronto Dominion Bank shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Toronto Dominion Bank competitors beat Toronto Dominion Bank on 8 of the 15 factors compared.

Toronto Dominion Bank Company Profile

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.