Toronto-Dominion Bank (TD) & Cadence Bancorp (CADE) Head to Head Review

Toronto-Dominion Bank (NYSE: TD) and Cadence Bancorp (NYSE:CADE) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Dividends

Toronto-Dominion Bank pays an annual dividend of $1.95 per share and has a dividend yield of 3.3%. Cadence Bancorp does not pay a dividend. Toronto-Dominion Bank pays out 45.0% of its earnings in the form of a dividend.

Profitability

This table compares Toronto-Dominion Bank and Cadence Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Toronto-Dominion Bank 23.09% 15.17% 0.86%
Cadence Bancorp 20.60% 9.71% 1.21%

Institutional and Insider Ownership

49.0% of Toronto-Dominion Bank shares are held by institutional investors. Comparatively, 14.2% of Cadence Bancorp shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Toronto-Dominion Bank and Cadence Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Toronto-Dominion Bank $34.52 billion 3.12 $7.95 billion $4.33 13.49
Cadence Bancorp $430.78 million 5.47 $102.35 million $1.26 22.37

Toronto-Dominion Bank has higher revenue and earnings than Cadence Bancorp. Toronto-Dominion Bank is trading at a lower price-to-earnings ratio than Cadence Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Toronto-Dominion Bank and Cadence Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toronto-Dominion Bank 0 2 7 0 2.78
Cadence Bancorp 0 3 5 0 2.63

Toronto-Dominion Bank currently has a consensus target price of $80.00, suggesting a potential upside of 36.92%. Cadence Bancorp has a consensus target price of $26.86, suggesting a potential downside of 4.73%. Given Toronto-Dominion Bank’s stronger consensus rating and higher possible upside, research analysts clearly believe Toronto-Dominion Bank is more favorable than Cadence Bancorp.

Summary

Toronto-Dominion Bank beats Cadence Bancorp on 10 of the 14 factors compared between the two stocks.

Toronto-Dominion Bank Company Profile

Toronto-Dominion Bank (the Bank) is a Canada-based bank, which operates in the North America. It is an online financial services firm, with over 10.2 million online and mobile customers. Its segments include Canadian Retail, U.S. Retail, Wholesale Banking and Corporate. The Canadian Retail segment provides a range of financial products and services to customers in the Canadian personal and commercial banking businesses. The U.S. Retail segment consists of its retail and commercial banking operations operating under the brand TD Bank, and wealth management services in the United States. The Wholesale Banking segment provides a range of capital markets, investment banking, and corporate banking products and services, including underwriting and distribution of new debt and equity issues, providing advice on strategic acquisitions and divestitures, funding and investment needs of its clients. The Corporate segment provides centralized advice and counsel to its businesses.

Cadence Bancorp Company Profile

Cadence Bancorporation is a bank holding company. The Company is focused on middle-market commercial lending, complemented by retail banking and wealth management services, and provides a broad range of banking services to businesses, individuals and business owners. It operates through three segments: Banking, Financial Services and Corporate. Banking Segment offers a range of deposit products and lending services through its Commercial Banking, Retail Banking and Private Banking business lines. Financial Services segment provides an integrated set of investment, retirement, estate, college and business succession planning, retail brokerage, personal and institutional trust services and insurance services through three product lines: Investment Management, Trust Services, and Insurance Services. The Corporate Segment reflects parent-only activities, including debt and capital raising, and intercompany eliminations.

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