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.

Performance

Cumulative Growth

Trailing Returns

Performance at a Glance

Risk

Drawdown

Risk at a Glance

Profitability

Royal Bank of Canada (RY) at 16.20% sits in the top ROE quartile, while Toronto-Dominion Bank (TD) at 11.91% is closer to the peer norm — stronger capital efficiency for RY.

Royal Bank of Canada (RY) at 33.69% keeps about the industry-typical share of revenue as profit, while Toronto-Dominion Bank (TD) at 25.19% 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 at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

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 at a Glance

Dividends

Toronto-Dominion Bank (TD) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Royal Bank of Canada (RY) reports a yield of 2.53%, ranking against industry peers normally.

Dividend policy can be sized up on one side only: Royal Bank of Canada (RY) pays out 41.35% of earnings, measured against its industry’s payout band; Toronto-Dominion Bank (TD) shows no payout ratio this period.

Dividends at a Glance

Valuation

Both Royal Bank of Canada (RY) at 18.29 and Toronto-Dominion Bank (TD) at 19.56 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.

Measured against book value, both Royal Bank of Canada (RY) at 3.02 and Toronto-Dominion Bank (TD) at 2.24 look expensive — each P/B ratio sits above its industry’s benchmark range.

Valuation at a Glance