Toronto-Dominion Bank (NYSE:TD) and DNB ASA/S (OTCMKTS:DNHBY) are both large-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional & Insider Ownership

47.6% of Toronto-Dominion Bank shares are held by institutional investors. Comparatively, 0.1% of DNB ASA/S shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Toronto-Dominion Bank and DNB ASA/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toronto-Dominion Bank 0 5 6 0 2.55
DNB ASA/S 0 0 1 0 3.00

Toronto-Dominion Bank presently has a consensus price target of $79.82, suggesting a potential upside of 42.43%. Given Toronto-Dominion Bank’s higher possible upside, equities analysts plainly believe Toronto-Dominion Bank is more favorable than DNB ASA/S.

Profitability

This table compares Toronto-Dominion Bank and DNB ASA/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Toronto-Dominion Bank 19.76% 15.69% 0.91%
DNB ASA/S 33.63% 11.30% 0.91%

Volatility & Risk

Toronto-Dominion Bank has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, DNB ASA/S has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Dividends

Toronto-Dominion Bank pays an annual dividend of $2.28 per share and has a dividend yield of 4.1%. DNB ASA/S pays an annual dividend of $0.78 per share and has a dividend yield of 4.4%. Toronto-Dominion Bank pays out 45.3% of its earnings in the form of a dividend. DNB ASA/S pays out 43.1% 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. Toronto-Dominion Bank has increased its dividend for 3 consecutive years. DNB ASA/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Toronto-Dominion Bank and DNB ASA/S’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Toronto-Dominion Bank $44.50 billion 2.28 $8.78 billion $5.03 11.14
DNB ASA/S $8.75 billion 3.23 $2.98 billion $1.81 9.77

Toronto-Dominion Bank has higher revenue and earnings than DNB ASA/S. DNB ASA/S is trading at a lower price-to-earnings ratio than Toronto-Dominion Bank, indicating that it is currently the more affordable of the two stocks.

Summary

Toronto-Dominion Bank beats DNB ASA/S on 9 of the 15 factors compared between the two stocks.

Toronto-Dominion Bank Company Profile

The Toronto-Dominion Bank, together with its subsidiaries, provides various personal and commercial banking products and services in Canada and the United States. The company operates through three segments: Canadian Retail, U.S. Retail, and Wholesale Banking. It offers personal deposits, such as checking, savings, and investment products; financing, investment, cash management, international trade, and day-to-day banking services to businesses; financing options to customers at point of sale for automotive and recreational vehicle purchases through auto dealer network; credit cards; investing, advice-based, and asset management services to retail and institutional clients; and property and casualty insurance, as well as life and health insurance products. The company also provides capital markets, and corporate and investment banking services, including underwriting and distribution of new debt and equity issues; providing advice on strategic acquisitions and divestitures; and trading, funding, and investment services to companies, governments, and institutions, as well as automated teller machines, telephone, Internet, and mobile banking services. The company offers its products and services under the TD Bank, America's Most Convenient Bank, and TD Securities brand names. It offers personal and business banking products and services through a network of 1,098 branches and 3,394 automated teller machines in Canada; and through a network of 1,257 stores. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada.

DNB ASA/S Company Profile

DNB ASA provides various banking products and services for retail and corporate customers in Norway and internationally. The company offers savings and investment products, including saving accounts, home savings products, equities, retirement savings, fixed rate deposits, exchange traded products, bonds and commercial papers, and asset management services; and loans, such as home mortgages, car and consumer loans, trade finance, and export financing, as well as overdraft facilities, bank guarantees, and leasing and factoring services. It also provides various cards; a range of insurance products comprising car, boat, motor vehicle, household contents, home, holiday home, travel, and life insurance products, as well as pet insurance for cats and dogs; and pension plans. In addition, the company offers investment banking advisory and financing services, such as mergers and acquisitions, and equity and debt capital markets for corporations and private equity firms; and foreign exchange and treasury, cash management, research, commodities, equities, corporate finance, interest rates, securities, real estate broking, and Internet and mobile banking services. It offers its products and services to various sectors, including energy; financial institutions; healthcare; manufacturing; packaging and forest products; seafood; shipping, offshore, and logistics; and telecom, media, and technology. The company distributes its products and services through its branches, in-store postal and banking outlets, and post office counters. DNB ASA was founded in 1822 and is headquartered in Oslo, Norway.

Receive News & Ratings for Toronto-Dominion Bank Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Toronto-Dominion Bank and related companies with MarketBeat.com's FREE daily email newsletter.