TD vs RY vs BMO vs BNS

For growth investors, The Bank of Nova Scotia (BNS) is the stronger pick with 148.

2% revenue growth year-over-year, versus -2. 8% for The Toronto-Dominion Bank (TD). 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, The Bank of Nova Scotia is actually cheaper at 10. 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: The Toronto-Dominion Bank wins at 0. 98x versus The Bank of Nova Scotia's 7. 01x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Royal Bank of Canada (RY) delivered a total return of +106.

0%, compared to +45. 3% for The Bank of Nova Scotia (BNS). Over 10 years, the gap is even starker: RY returned +271. 8% versus BNS's +114. 6%. 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), The Bank of Nova Scotia (BNS) is the lower-risk stock at 0.

66β versus Bank of Montreal's 0. 98β — meaning BMO is approximately 47% more volatile than BNS 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), The Bank of Nova Scotia (BNS) is pulling ahead at 148.

2% versus -2. 8% for The Toronto-Dominion Bank (TD). On earnings-per-share growth, the picture is similar: The Toronto-Dominion Bank grew EPS 144. 9% year-over-year, compared to -2. 9% for The Bank of Nova Scotia. 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 10. 6% for The Bank of Nova Scotia — 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. 4% for BNS. 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, The Toronto-Dominion Bank (TD) is the more undervalued stock at a PEG of 0. 98x versus The Bank of Nova Scotia's 7. 01x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, The Bank of Nova Scotia (BNS) trades at 10. 0x forward P/E versus 12. 5x for Royal Bank of Canada — 2. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BNS: -11. 4% to $72. 15.

All stocks in this comparison pay dividends.

The Bank of Nova Scotia (BNS) offers the highest yield at 3. 8%, 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; RY is a large-cap quality compounder stock; BMO is a mid-cap income-oriented stock; BNS is a mid-cap high-growth 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.