TD vs CM vs BMO 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 13. 7x trailing P/E (12. 2x forward), making it the more compelling value choice. Analysts rate The Toronto-Dominion Bank (TD) a "Buy" — based on 17 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 13.

7x versus Bank of Montreal at 20. 1x. On forward P/E, Canadian Imperial Bank of Commerce is actually cheaper at 10. 8x — 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. 68x versus Bank of Montreal's 1. 34x — 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 +106.

2%, compared to +75. 9% for The Toronto-Dominion Bank (TD). Over 10 years, the gap is even starker: RY returned +271. 8% versus TD's +209. 4%. 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.

73β versus Bank of Montreal's 0. 98β — meaning BMO is approximately 34% more volatile than RY relative to the S&P 500. On balance sheet safety, Bank of Montreal (BMO) 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 11. 1% for Bank of Montreal — 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 14. 8% for BMO. 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. 68x versus Bank of Montreal's 1. 34x. 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 10. 8x forward P/E versus 12. 5x for Royal Bank of Canada — 1. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CM: -2. 3% to $106. 62.

All stocks in this comparison pay dividends.

Bank of Montreal (BMO) offers the highest yield at 3. 0%, versus 2. 3% 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.

73), 2. 3% yield, +271. 8% 10Y return). Both have compounded well over 10 years (RY: +271. 8%, BMO: +210. 6%), 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.

In terms of investment character: TD is a mid-cap deep-value stock; CM is a mid-cap deep-value stock; BMO is a mid-cap income-oriented stock; RY is a large-cap quality compounder stock. 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.