HDB vs. TD, IBN, MUFG, RY, SAN, SMFG, BMO, BBVA, ING, and CM
Should you be buying HDFC Bank stock or one of its competitors? The main competitors of HDFC Bank include Toronto-Dominion Bank (TD), ICICI Bank (IBN), Mitsubishi UFJ Financial Group (MUFG), Royal Bank of Canada (RY), Banco Santander (SAN), Sumitomo Mitsui Financial Group (SMFG), Bank of Montreal (BMO), Banco Bilbao Vizcaya Argentaria (BBVA), ING Groep (ING), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "commercial banks, not elsewhere classified" industry.
Toronto-Dominion Bank (NYSE:TD) and HDFC Bank (NYSE:HDB) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, community ranking, analyst recommendations, institutional ownership, media sentiment and dividends.
In the previous week, Toronto-Dominion Bank had 22 more articles in the media than HDFC Bank. MarketBeat recorded 30 mentions for Toronto-Dominion Bank and 8 mentions for HDFC Bank. Toronto-Dominion Bank's average media sentiment score of 0.83 beat HDFC Bank's score of 0.15 indicating that HDFC Bank is being referred to more favorably in the news media.
Toronto-Dominion Bank presently has a consensus target price of $89.33, suggesting a potential upside of 63.43%. Given HDFC Bank's higher possible upside, equities research analysts plainly believe Toronto-Dominion Bank is more favorable than HDFC Bank.
HDFC Bank has a net margin of 15.71% compared to HDFC Bank's net margin of 11.16%. Toronto-Dominion Bank's return on equity of 15.45% beat HDFC Bank's return on equity.
52.4% of Toronto-Dominion Bank shares are held by institutional investors. Comparatively, 17.6% of HDFC Bank shares are held by institutional investors. 0.1% of Toronto-Dominion Bank shares are held by insiders. Comparatively, 1.0% of HDFC Bank shares are held by 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.
Toronto-Dominion Bank received 97 more outperform votes than HDFC Bank when rated by MarketBeat users. However, 69.24% of users gave HDFC Bank an outperform vote while only 54.95% of users gave Toronto-Dominion Bank an outperform vote.
Toronto-Dominion Bank has higher revenue and earnings than HDFC Bank. Toronto-Dominion Bank is trading at a lower price-to-earnings ratio than HDFC Bank, indicating that it is currently the more affordable of the two stocks.
Toronto-Dominion Bank has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, HDFC Bank has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.
Toronto-Dominion Bank pays an annual dividend of $1.43 per share and has a dividend yield of 2.6%. HDFC Bank pays an annual dividend of $0.58 per share and has a dividend yield of 1.0%. Toronto-Dominion Bank pays out 30.6% of its earnings in the form of a dividend. HDFC Bank pays out 17.8% 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 3 consecutive years and HDFC Bank has increased its dividend for 2 consecutive years. Toronto-Dominion Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
HDFC Bank beats Toronto-Dominion Bank on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HDB and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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