Royal Bank of Canada (RY)vsToronto Dominion Bank (TD)
RY
Royal Bank of Canada
$204.57
+0.78%
FINANCIAL SERVICES · Cap: $281.07B
TD
Toronto Dominion Bank
$124.74
-0.24%
FINANCIAL SERVICES · Cap: $203.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 10% more annual revenue ($67.15B vs $60.82B). RY leads profitability with a 33.9% profit margin vs 26.6%. TD appears more attractively valued with a PEG of 1.01. TD earns a higher WallStSmart Score of 78/100 (B+).
RY
Strong Buy68
out of 100
Grade: B-
TD
Strong Buy78
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Strong operational efficiency at 38.0%
Keeps 27 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 45.0% YoY
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.
Bull Case : TD
The strongest argument for TD centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 26.6% and operating margin at 38.0%. Revenue growth of 11.5% demonstrates continued momentum.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Bear Case : TD
The primary concerns for TD are Free Cash Flow, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.35 is elevated, increasing financial risk.
Key Dynamics to Monitor
RY carries more volatility with a beta of 0.91 — expect wider price swings.
TD is growing revenue faster at 11.5% — sustainability is the question.
TD generates stronger free cash flow (-6.6B), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TD scores higher overall (78/100 vs 68/100), backed by strong 26.6% margins and 11.5% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
Toronto Dominion Bank
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Toronto-Dominion Bank offers a variety of personal and commercial banking products and services in Canada and the United States. The company is headquartered in Toronto, Canada.
Visit Website →Compare with Other BANKS - DIVERSIFIED Stocks
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