CM vs TD vs RY

For growth investors, Royal Bank of Canada (RY) is the stronger pick with 2.

1% revenue growth year-over-year, versus -3. 1% for Canadian Imperial Bank of Commerce (CM). The Toronto-Dominion Bank (TD) offers the better valuation at 12. 8x trailing P/E (11. 5x forward), making it the more compelling value choice. Analysts rate Canadian Imperial Bank of Commerce (CM) a "Hold" — based on 15 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, The Toronto-Dominion Bank (TD) is the cheapest at 12.

8x versus Canadian Imperial Bank of Commerce at 17. 8x. On forward P/E, Canadian Imperial Bank of Commerce is actually cheaper at 11. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Canadian Imperial Bank of Commerce wins at 0. 70x versus The Toronto-Dominion Bank's 0. 93x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Canadian Imperial Bank of Commerce (CM) delivered a total return of +137.

3%, compared to +74. 1% for The Toronto-Dominion Bank (TD). Over 10 years, the gap is even starker: RY returned +267. 7% versus TD's +210. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Royal Bank of Canada (RY) is the lower-risk stock at 0.

64β versus Canadian Imperial Bank of Commerce's 0. 70β — meaning CM is approximately 9% more volatile than RY relative to the S&P 500. On balance sheet safety, The Toronto-Dominion Bank (TD) carries a lower debt/equity ratio of 5% versus 6% for Royal Bank of Canada — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Royal Bank of Canada (RY) is pulling ahead at 2.

1% versus -3. 1% for Canadian Imperial Bank of Commerce (CM). On earnings-per-share growth, the picture is similar: The Toronto-Dominion Bank grew EPS 144. 9% year-over-year, compared to 17. 7% for Canadian Imperial Bank of Commerce. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Toronto-Dominion Bank (TD) is the more profitable company, earning 17.

7% net margin versus 13. 6% for Canadian Imperial Bank of Commerce — meaning it keeps 17. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TD leads at 20. 7% versus 17. 6% for CM. At the gross margin level — before operating expenses — TD leads at 49. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Canadian Imperial Bank of Commerce (CM) is the more undervalued stock at a PEG of 0. 70x versus The Toronto-Dominion Bank's 0. 93x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Canadian Imperial Bank of Commerce (CM) trades at 11. 0x forward P/E versus 11. 5x for The Toronto-Dominion Bank — 0. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CM: -5. 0% to $106. 62.

All stocks in this comparison pay dividends.

The Toronto-Dominion Bank (TD) offers the highest yield at 3. 0%, versus 2. 5% for Royal Bank of Canada (RY).

For long-horizon retirement investors, Royal Bank of Canada (RY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

64), 2. 5% yield, +267. 7% 10Y return). Both have compounded well over 10 years (RY: +267. 7%, CM: +262. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.