RY vs. TD: Royal Bank of Canada vs. Toronto-Dominion Bank Stock Comparison

Company Profile

Royal Bank of Canada (RY) and Toronto-Dominion Bank (TD) are both classified in the Diversified Banks sub-industry within the broader Banks industry, placing them in the closest GICS peer bucket.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Royal Bank of Canada (RY) at 16.21% sits in the top ROE quartile, while Toronto-Dominion Bank (TD) at 12.83% is closer to the peer norm — stronger capital efficiency for RY.

Royal Bank of Canada (RY) at 33.87% keeps about the industry-typical share of revenue as profit, while Toronto-Dominion Bank (TD) at 26.62% retains only a bottom-quartile share.

Neither side reports a meaningful operating margin: for Royal Bank of Canada (RY) in Banks and Toronto-Dominion Bank (TD) in Banks, funding costs are part of the core business, so net margin and ROE are the cleaner profitability reads.

Profitability Metrics

Growth

Both Royal Bank of Canada (RY) at 15.73% and Toronto-Dominion Bank (TD) at 8.93% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Only one side can be read here: Toronto-Dominion Bank (TD) reports EPS growth of 144.92%, ranked against its industry; Royal Bank of Canada (RY) has no EPS growth figure this period.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Royal Bank of Canada (RY) in Banks and Toronto-Dominion Bank (TD) in Banks both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

debt-to-equity ratio is set aside for both: Royal Bank of Canada (RY) in Banks and Toronto-Dominion Bank (TD) in Banks run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Dividends

Both Royal Bank of Canada (RY) at 3.26% and Toronto-Dominion Bank (TD) at 3.46% offer top-quartile dividend income relative to share price within their industries.

Royal Bank of Canada (RY) at 41.49% pays out a band-typical share of earnings, while Toronto-Dominion Bank (TD) at 46.36% distributes more than its industry norm — less retained, thinner cover.

Dividend Metrics

Valuation

Both Royal Bank of Canada (RY) at 17.58 and Toronto-Dominion Bank (TD) at 18.49 sit in the richer earnings-multiple quartile for P/E ratio, so investors are paying more for TTM earnings than they pay for typical peers.

P/S ratio is set aside for both Royal Bank of Canada (RY) in Banks and Toronto-Dominion Bank (TD) in Banks: without a conventional revenue line, pricing per dollar of sales isn’t meaningful, and book- or earnings-based multiples make the better comparison.

Both look rich against book: Toronto-Dominion Bank (TD) at 2.31 sits in the upper P/B ratio quartile, and Royal Bank of Canada (RY) at 2.92 prices even higher, above its industry range.

Valuation Metrics