HDB vs. TD, IBN, MUFG, SAN, SMFG, RY, 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), Banco Santander (SAN), Sumitomo Mitsui Financial Group (SMFG), Royal Bank of Canada (RY), 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 business? We will compare the two businesses based on the strength of their dividends, media sentiment, earnings, profitability, valuation, community ranking, analyst recommendations, institutional ownership and risk.
Toronto-Dominion Bank has higher earnings, but lower revenue 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.
In the previous week, Toronto-Dominion Bank had 17 more articles in the media than HDFC Bank. MarketBeat recorded 26 mentions for Toronto-Dominion Bank and 9 mentions for HDFC Bank. Toronto-Dominion Bank's average media sentiment score of 0.36 beat HDFC Bank's score of 0.25 indicating that HDFC Bank is being referred to more favorably in the news media.
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 company insiders. Comparatively, 1.0% of HDFC Bank shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Toronto-Dominion Bank pays an annual dividend of $3.02 per share and has a dividend yield of 5.4%. HDFC Bank pays an annual dividend of $0.59 per share and has a dividend yield of 1.1%. Toronto-Dominion Bank pays out 64.5% of its earnings in the form of a dividend. HDFC Bank pays out 18.1% 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.
Toronto-Dominion Bank presently has a consensus price target of $89.33, suggesting a potential upside of 59.18%. Given HDFC Bank's higher probable upside, equities research analysts plainly believe Toronto-Dominion Bank is more favorable than HDFC Bank.
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.
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.
Toronto-Dominion Bank has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, HDFC Bank has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.
Summary
HDFC Bank beats Toronto-Dominion Bank on 12 of the 22 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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