Head-To-Head Review: Toronto Dominion Bank (NYSE:TD) and China Minsheng (OTCMKTS:CMAKY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
China Minsheng	11.27%	4.49%	0.39%
Toronto Dominion Bank	17.52%	14.29%	0.79%

Risk & Volatility

China Minsheng has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, Toronto Dominion Bank has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Valuation & Earnings

This table compares China Minsheng and Toronto Dominion Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Minsheng	$37.47 billion	0.54	$4.49 billion	$0.88	5.20
Toronto Dominion Bank	$87.34 billion	1.83	$14.66 billion	$9.05	10.59

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

Insider and Institutional 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, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for China Minsheng and Toronto Dominion Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Minsheng	0	1	0	0	2.00
Toronto Dominion Bank	0	4	3	2	2.78

Toronto Dominion Bank has a consensus target price of $93.00, indicating a potential downside of 2.96%. Given Toronto Dominion Bank’s stronger consensus rating and higher possible upside, analysts plainly believe Toronto Dominion Bank is more favorable than China Minsheng.

Dividends

China Minsheng pays an annual dividend of $0.27 per share and has a dividend yield of 5.9%. Toronto Dominion Bank pays an annual dividend of $3.15 per share and has a dividend yield of 3.3%. China Minsheng pays out 30.7% of its earnings in the form of a dividend. Toronto Dominion Bank pays out 34.8% 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 Minsheng is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Toronto Dominion Bank beats China Minsheng on 16 of the 18 factors compared between the two stocks.

About China Minsheng

China Minsheng Banking Corp., Ltd. provides banking products and services for individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, micro-credit products for individuals, medium and long term, and short-term working capital loans; and debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit boxes, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, asset management, and trust financing services. Additionally, it provides convenient finance and investment banking services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company operates through branch-level institutions, business outlets, community sub-branches, and small business sub-branches. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.

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.