Comprehensive Stock Comparison
Compare Royal Bank of Canada (RY) vs The Toronto-Dominion Bank (TD) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | RY | 2.1% revenue growth vs TD's -2.8% |
| Value | TD | Lower P/E (10.4x vs 10.6x), PEG 0.84 vs 0.85 |
| Quality / Margins | TD | 17.7% net margin vs RY's 14.8% |
| Stability / Safety | TD | Beta 0.43 vs RY's 0.56, lower leverage |
| Dividends | TD | 3.3% yield, 2-year raise streak, vs RY's 2.7% |
| Momentum (1Y) | TD | +67.6% vs RY's +45.3% |
| Efficiency (ROA) | TD | 1.0% ROA vs RY's 0.9%, ROIC 2.3% vs 2.0% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Royal Bank of Canada is a diversified financial services institution operating primarily in Canada and internationally. It generates revenue mainly through personal and commercial banking (roughly 50% of earnings), wealth management, capital markets, and insurance services. The bank's competitive advantage lies in its dominant Canadian retail banking franchise — the largest in the country — supported by extensive branch networks and long-standing customer relationships.
The Toronto-Dominion Bank is a major North American retail and commercial bank operating primarily in Canada and the United States. It generates revenue through retail banking services—including deposits, lending, and wealth management—and wholesale banking operations, with Canadian retail contributing roughly 60% of earnings and U.S. retail about 30%. TD's competitive advantage lies in its extensive North American branch network—one of the largest among Canadian banks—and its strong retail banking franchise built on customer loyalty and cross-selling capabilities.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TD leads in 5 of 6 categories (Financial Metrics, Valuation Metrics). RY leads in 1 (Total Returns).
Financial Metrics (TTM)
RY and TD operate at a comparable scale, with $137.4B and $115.8B in trailing revenue. Profitability is closely matched — net margins range from 17.7% (TD) to 14.8% (RY).
| Metric | RYRoyal Bank of Can… | TDThe Toronto-Domin… |
|---|---|---|
| RevenueTrailing 12 months | $137.4B | $115.8B |
| EBITDAEarnings before interest/tax | $28.7B | $26.1B |
| Net IncomeAfter-tax profit | $20.4B | $20.5B |
| Free Cash FlowCash after capex | $53.0B | -$71.8B |
| Gross MarginGross profit ÷ Revenue | +45.3% | +49.0% |
| Operating MarginEBIT ÷ Revenue | +18.7% | +20.7% |
| Net MarginNet income ÷ Revenue | +14.8% | +17.7% |
| FCF MarginFCF ÷ Revenue | +38.6% | -62.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +28.9% | -8.2% |
Valuation Metrics
At 11.5x trailing earnings, TD trades at a 29% valuation discount to RY's 16.2x P/E. Adjusting for growth (PEG ratio), TD offers better value at 0.93x vs RY's 1.30x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | RYRoyal Bank of Can… | TDThe Toronto-Domin… |
|---|---|---|
| Market CapShares × price | $234.2B | $163.3B |
| Enterprise ValueMkt cap + debt − cash | $780.4B | $562.7B |
| Trailing P/EPrice ÷ TTM EPS | 16.24x | 11.53x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.58x | 10.43x |
| PEG RatioP/E ÷ EPS growth rate | 1.30x | 0.93x |
| EV / EBITDAEnterprise value multiple | 37.17x | 29.49x |
| Price / SalesMarket cap ÷ Revenue | 2.33x | 1.93x |
| Price / BookPrice ÷ Book value/share | 2.32x | 1.79x |
| Price / FCFMarket cap ÷ FCF | 6.05x | — |
Profitability & Efficiency
TD delivers a 16.1% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $15 for RY. TD carries lower financial leverage with a 5.19x debt-to-equity ratio, signaling a more conservative balance sheet compared to RY's 6.00x. On the Piotroski fundamental quality scale (0–9), RY scores 6/9 vs TD's 5/9, reflecting solid financial health.
| Metric | RYRoyal Bank of Can… | TDThe Toronto-Domin… |
|---|---|---|
| ROE (TTM)Return on equity | +14.6% | +16.1% |
| ROA (TTM)Return on assets | +0.9% | +1.0% |
| ROICReturn on invested capital | +2.0% | +2.3% |
| ROCEReturn on capital employed | +3.5% | +5.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 6.00x | 5.19x |
| Net DebtTotal debt minus cash | $747.6B | $546.6B |
| Cash & Equiv.Liquid assets | $87.4B | $116.9B |
| Total DebtShort + long-term debt | $835.0B | $663.6B |
| Interest CoverageEBIT ÷ Interest expense | 0.36x | 0.44x |
Total Returns (with DRIP)
A $10,000 investment in RY five years ago would be worth $21,571 today (with dividends reinvested), compared to $18,159 for TD. Over the past 12 months, TD leads with a +67.6% total return vs RY's +45.3%. The 3-year compound annual growth rate (CAGR) favors RY at 21.0% vs TD's 16.9% — a key indicator of consistent wealth creation.
| Metric | RYRoyal Bank of Can… | TDThe Toronto-Domin… |
|---|---|---|
| YTD ReturnYear-to-date | -1.4% | +3.8% |
| 1-Year ReturnPast 12 months | +45.3% | +67.6% |
| 3-Year ReturnCumulative with dividends | +77.2% | +59.6% |
| 5-Year ReturnCumulative with dividends | +115.7% | +81.6% |
| 10-Year ReturnCumulative with dividends | +295.9% | +215.1% |
| CAGR (3Y)Annualised 3-year return | +21.0% | +16.9% |
Risk & Volatility
TD is the less volatile stock with a 0.43 beta — it tends to amplify market swings less than RY's 0.56 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | RYRoyal Bank of Can… | TDThe Toronto-Domin… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.56x | 0.43x |
| 52-Week HighHighest price in past year | $176.19 | $99.78 |
| 52-Week LowLowest price in past year | $106.10 | $54.87 |
| % of 52W HighCurrent price vs 52-week peak | +94.9% | +97.6% |
| RSI (14)Momentum oscillator 0–100 | 49.2 | 62.3 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 2.0M |
Analyst Outlook
Wall Street rates RY as "Hold" and TD as "Hold". Consensus price targets imply -8.1% upside for TD (target: $90) vs -25.3% for RY (target: $125). For income investors, TD offers the higher dividend yield at 3.35% vs RY's 2.73%.
| Metric | RYRoyal Bank of Can… | TDThe Toronto-Domin… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $124.85 | $89.52 |
| # AnalystsCovering analysts | 29 | 17 |
| Dividend YieldAnnual dividend ÷ price | +2.7% | +3.3% |
| Dividend StreakConsecutive years of raises | 2 | 2 |
| Dividend / ShareAnnual DPS | $6.24 | $4.46 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.2% | +9.3% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 100 | 226.41 | +126.4% |
| The Toronto-Dominio… (TD) | 100 | 183.14 | +83.1% |
Royal Bank of Canada (RY) returned +116% over 5 years vs The Toronto-Dominio… (TD)'s +82%. A $10,000 investment in RY 5 years ago would be worth $21,571 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | $46.0B | $137.4B | +198.7% |
| The Toronto-Dominio… (TD) | $40.6B | $115.8B | +185.1% |
Royal Bank of Canada's revenue grew from $46.0B (2016) to $137.4B (2025) — a 12.9% CAGR. The Toronto-Dominion Bank's revenue grew from $40.6B (2016) to $115.8B (2025) — a 12.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 22.6% | 14.8% | -34.5% |
| The Toronto-Dominio… (TD) | 21.7% | 17.7% | -18.3% |
Royal Bank of Canada's net margin went from 23% (2016) to 15% (2025). The Toronto-Dominion Bank's net margin went from 22% (2016) to 18% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 10.8 | 12.1 | +12.0% |
| The Toronto-Dominio… (TD) | 10.7 | 8.1 | -24.3% |
Royal Bank of Canada has traded in a 8x–12x P/E range over 9 years; current trailing P/E is ~16x. The Toronto-Dominion Bank has traded in a 7x–12x P/E range over 9 years; current trailing P/E is ~12x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 6.78 | 14.09 | +107.8% |
| The Toronto-Dominio… (TD) | 4.67 | 11.56 | +147.5% |
Royal Bank of Canada's EPS grew from $6.78 (2016) to $14.09 (2025) — a 8% CAGR. The Toronto-Dominion Bank's EPS grew from $4.67 (2016) to $11.56 (2025) — a 11% CAGR.
Chart 6Free Cash Flow — 5 Years
Royal Bank of Canada generated $53B FCF in 2025 (-10% vs 2021). The Toronto-Dominion Bank generated $-72B FCF in 2025 (-247% vs 2021).
RY vs TD: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is RY or TD a better buy right now?
The Toronto-Dominion Bank (TD) offers the better valuation at 11.5x trailing P/E (10.4x forward), making it the more compelling value choice. Analysts rate Royal Bank of Canada (RY) a "Hold" — based on 29 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.
02Which has the better valuation — RY or TD?
On trailing P/E, The Toronto-Dominion Bank (TD) is the cheapest at 11.5x versus Royal Bank of Canada at 16.2x. On forward P/E, The Toronto-Dominion Bank is actually cheaper at 10.4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Toronto-Dominion Bank wins at 0.84x versus Royal Bank of Canada's 0.85x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — RY or TD?
Over the past 5 years, Royal Bank of Canada (RY) delivered a total return of +115.7%, compared to +81.6% for The Toronto-Dominion Bank (TD). A $10,000 investment in RY five years ago would be worth approximately $22K today (assuming dividends reinvested). Over 10 years, the gap is even starker: RY returned +295.9% versus TD's +215.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — RY or TD?
By beta (market sensitivity over 5 years), The Toronto-Dominion Bank (TD) is the lower-risk stock at 0.43β versus Royal Bank of Canada's 0.56β — meaning RY is approximately 29% more volatile than TD 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.
05Which has better profit margins — RY or TD?
The Toronto-Dominion Bank (TD) is the more profitable company, earning 17.7% net margin versus 14.8% for Royal Bank of Canada — 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 18.7% for RY. 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.
06Is RY or TD more undervalued right now?
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, The Toronto-Dominion Bank (TD) is the more undervalued stock at a PEG of 0.84x versus Royal Bank of Canada's 0.85x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, The Toronto-Dominion Bank (TD) trades at 10.4x forward P/E versus 10.6x for Royal Bank of Canada — 0.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TD: -8.1% to $89.52.
07Which pays a better dividend — RY or TD?
All stocks in this comparison pay dividends. The Toronto-Dominion Bank (TD) offers the highest yield at 3.3%, versus 2.7% for Royal Bank of Canada (RY).
08Is RY or TD better for a retirement portfolio?
For long-horizon retirement investors, The Toronto-Dominion Bank (TD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.43), 3.3% yield, +215.1% 10Y return). Both have compounded well over 10 years (TD: +215.1%, RY: +295.9%), 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.
09What are the main differences between RY and TD?
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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.