TD vs. BMO, BNS, RY, CM, NA, BN, MFC, IFC, GWO, and SLF
Should you be buying Toronto-Dominion Bank stock or one of its competitors? The main competitors of Toronto-Dominion Bank include Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Royal Bank of Canada (RY), Canadian Imperial Bank of Commerce (CM), National Bank of Canada (NA), Brookfield (BN), Manulife Financial (MFC), Intact Financial (IFC), Great-West Lifeco (GWO), and Sun Life Financial (SLF). These companies are all part of the "financial services" sector.
Bank of Montreal (TSE:BMO) and Toronto-Dominion Bank (TSE:TD) are both large-cap financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, community ranking, analyst recommendations, dividends, profitability, media sentiment, risk, earnings and valuation.
Bank of Montreal pays an annual dividend of C$6.04 per share and has a dividend yield of 4.7%. Toronto-Dominion Bank pays an annual dividend of C$4.08 per share and has a dividend yield of 5.2%. Bank of Montreal pays out 83.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Toronto-Dominion Bank pays out 64.5% of its earnings in the form of a dividend. Toronto-Dominion Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.
Bank of Montreal received 81 more outperform votes than Toronto-Dominion Bank when rated by MarketBeat users. However, 55.10% of users gave Toronto-Dominion Bank an outperform vote while only 52.66% of users gave Bank of Montreal an outperform vote.
Bank of Montreal currently has a consensus price target of C$133.33, suggesting a potential upside of 2.85%. Toronto-Dominion Bank has a consensus price target of C$89.05, suggesting a potential upside of 14.24%. Given Bank of Montreal's higher possible upside, analysts plainly believe Toronto-Dominion Bank is more favorable than Bank of Montreal.
In the previous week, Toronto-Dominion Bank had 4 more articles in the media than Bank of Montreal. MarketBeat recorded 14 mentions for Toronto-Dominion Bank and 10 mentions for Bank of Montreal. Bank of Montreal's average media sentiment score of 0.56 beat Toronto-Dominion Bank's score of 0.33 indicating that Toronto-Dominion Bank is being referred to more favorably in the news media.
Bank of Montreal has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Toronto-Dominion Bank has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
54.3% of Bank of Montreal shares are held by institutional investors. Comparatively, 59.8% of Toronto-Dominion Bank shares are held by institutional investors. 0.0% of Bank of Montreal shares are held by insiders. Comparatively, 0.1% of Toronto-Dominion Bank shares 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.
Toronto-Dominion Bank has a net margin of 23.86% compared to Toronto-Dominion Bank's net margin of 17.71%. Bank of Montreal's return on equity of 10.72% beat Toronto-Dominion Bank's return on equity.
Toronto-Dominion Bank has higher revenue and earnings than Bank of Montreal. Toronto-Dominion Bank is trading at a lower price-to-earnings ratio than Bank of Montreal, indicating that it is currently the more affordable of the two stocks.
Summary
Toronto-Dominion Bank beats Bank of Montreal on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TD 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 TSE 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.
Toronto-Dominion Bank Competitors List
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