TD vs USB

For growth investors, U.

S. Bancorp (USB) is the stronger pick with 0. 3% revenue growth year-over-year, versus -2. 8% for The Toronto-Dominion Bank (TD). U. S. Bancorp (USB) offers the better valuation at 12. 0x trailing P/E (10. 9x 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, U.

S. Bancorp (USB) is the cheapest at 12. 0x versus The Toronto-Dominion Bank at 13. 7x. On forward P/E, U. S. Bancorp is actually cheaper at 10. 9x. 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 U. S. Bancorp's 1. 27x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, The Toronto-Dominion Bank (TD) delivered a total return of +75.

9%, compared to +7. 2% for U. S. Bancorp (USB). Over 10 years, the gap is even starker: TD returned +209. 4% versus USB's +68. 2%. 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 Toronto-Dominion Bank (TD) is the lower-risk stock at 0.

76β versus U. S. Bancorp's 0. 93β — meaning USB is approximately 22% more volatile than TD relative to the S&P 500. On balance sheet safety, U. S. Bancorp (USB) carries a lower debt/equity ratio of 119% versus 5% for The Toronto-Dominion Bank — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), U.

S. Bancorp (USB) is pulling ahead at 0. 3% 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 21. 6% for U. S. Bancorp. 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 17. 7% for U. S. Bancorp — meaning it keeps 17. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: USB leads at 22. 2% versus 20. 7% for TD. At the gross margin level — before operating expenses — USB leads at 62. 8%, 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 U. S. Bancorp's 1. 27x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, U. S. Bancorp (USB) trades at 10. 9x forward P/E versus 12. 2x for The Toronto-Dominion Bank — 1. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for USB: 15. 1% to $63. 82.

In this comparison, TD (2.

8% yield) pays a dividend. USB does not pay a meaningful dividend and should not be held primarily for income.

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.

76), 2. 8% yield, +209. 4% 10Y return). Both have compounded well over 10 years (TD: +209. 4%, USB: +68. 2%), 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.

TD pays a dividend while USB does not, making them suitable for different income and tax situations. 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.