Critical Analysis: Toronto Dominion Bank (TD) vs. Bear State Financial (BSF)
Toronto Dominion Bank (NYSE: TD) and Bear State Financial (NASDAQ:BSF) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.
Risk and Volatility
Toronto Dominion Bank has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Bear State Financial has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
48.6% of Toronto Dominion Bank shares are held by institutional investors. Comparatively, 12.0% of Bear State Financial shares are held by institutional investors. 53.0% of Bear State Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Toronto Dominion Bank pays an annual dividend of $1.95 per share and has a dividend yield of 3.5%. Bear State Financial pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Toronto Dominion Bank pays out 44.6% of its earnings in the form of a dividend. Bear State Financial pays out 21.8% 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.
This is a summary of recent recommendations and price targets for Toronto Dominion Bank and Bear State Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Toronto Dominion Bank||0||2||7||0||2.78|
|Bear State Financial||0||0||0||0||N/A|
Toronto Dominion Bank presently has a consensus price target of $80.00, indicating a potential upside of 42.30%. Given Toronto Dominion Bank’s higher possible upside, research analysts clearly believe Toronto Dominion Bank is more favorable than Bear State Financial.
This table compares Toronto Dominion Bank and Bear State Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Toronto Dominion Bank||23.09%||15.17%||0.86%|
|Bear State Financial||19.79%||10.10%||1.11%|
Valuation & Earnings
This table compares Toronto Dominion Bank and Bear State Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Toronto Dominion Bank||$34.52 billion||3.00||$7.95 billion||$4.37||12.86|
|Bear State Financial||$103.10 million||3.76||$20.40 million||$0.55||18.64|
Toronto Dominion Bank has higher revenue and earnings than Bear State Financial. Toronto Dominion Bank is trading at a lower price-to-earnings ratio than Bear State Financial, indicating that it is currently the more affordable of the two stocks.
Toronto Dominion Bank beats Bear State Financial on 9 of the 15 factors compared between the two stocks.
Toronto Dominion Bank Company Profile
Toronto-Dominion Bank (the Bank) is a Canada-based bank, which operates in the North America. It is an online financial services firm, with over 10.2 million online and mobile customers. Its segments include Canadian Retail, U.S. Retail, Wholesale Banking and Corporate. The Canadian Retail segment provides a range of financial products and services to customers in the Canadian personal and commercial banking businesses. The U.S. Retail segment consists of its retail and commercial banking operations operating under the brand TD Bank, and wealth management services in the United States. The Wholesale Banking segment provides a range of capital markets, investment banking, and corporate banking products and services, including underwriting and distribution of new debt and equity issues, providing advice on strategic acquisitions and divestitures, funding and investment needs of its clients. The Corporate segment provides centralized advice and counsel to its businesses.
Bear State Financial Company Profile
Bear State Financial, Inc. is a bank holding company. The Company’s subsidiary Bear State Bank, N.A. (the Bank) is a community-oriented financial institution, which offers a range of retail and business deposit accounts, including noninterest bearing and interest bearing checking accounts, savings and money market accounts, certificates of deposit and individual retirement accounts. The Loan products offered by the Bank include residential real estate loans, consumer loans, construction loans, lines of credit, commercial real estate loans, and commercial business loans. The Bank’s other financial services include automated teller machines; around the clock telephone banking; online banking, including account access, bill payment and e-statements; mobile banking, including remote deposit capture and funds transfer; Bounce Protection overdraft services; debit cards, and safe deposit boxes.
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