Analyzing Toronto-Dominion Bank (TD) and ING Groep (ING)

Toronto-Dominion Bank (NYSE:TD) and ING Groep (NYSE:ING) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Dividends

Toronto-Dominion Bank pays an annual dividend of $1.97 per share and has a dividend yield of 3.5%. ING Groep pays an annual dividend of $0.44 per share and has a dividend yield of 3.6%. Toronto-Dominion Bank pays out 39.2% of its earnings in the form of a dividend. ING Groep pays out 26.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Toronto-Dominion Bank has increased its dividend for 2 consecutive years and ING Groep has increased its dividend for 3 consecutive years. ING Groep is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Toronto-Dominion Bank $41.21 billion 2.48 $8.75 billion $5.03 11.06
ING Groep $21.36 billion 2.23 $5.55 billion $1.64 7.48

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

Profitability

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

Net Margins Return on Equity Return on Assets
Toronto-Dominion Bank 21.27% 16.78% 0.93%
ING Groep 26.05% 9.07% 0.51%

Volatility & Risk

Toronto-Dominion Bank has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, ING Groep has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Toronto-Dominion Bank and ING Groep, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toronto-Dominion Bank 0 2 2 0 2.50
ING Groep 0 4 3 0 2.43

Institutional and Insider Ownership

47.7% of Toronto-Dominion Bank shares are owned by institutional investors. Comparatively, 3.4% of ING Groep shares are owned 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.

Summary

Toronto-Dominion Bank beats ING Groep on 9 of the 15 factors compared between the two stocks.

Toronto-Dominion Bank Company Profile

The Toronto-Dominion Bank, together with its subsidiaries, provides various personal and commercial banking products and services in Canada and the United States. The company operates through three segments: Canadian Retail, U.S. Retail, and Wholesale Banking. It offers personal deposits, such as checking, savings, and investment products; financing, investment, cash management, international trade, and day-to-day banking services to businesses; financing options to customers at point of sale for automotive and recreational vehicle purchases through auto dealer network; credit cards; investing, advice-based, and asset management services to retail and institutional clients; and property and casualty insurance, as well as life and health insurance products. The company also provides capital markets, and corporate and investment banking services, including underwriting and distribution of new debt and equity issues; providing advice on strategic acquisitions and divestitures; and trading, funding, and investment services to companies, governments, and institutions, as well as automated teller machines, telephone, Internet, and mobile banking services. The company offers its products and services under the TD Bank, America's Most Convenient Bank, and TD Securities brand names. It offers personal and business banking products and services through a network of 1,098 branches and 3,394 automated teller machines in Canada; and through a network of 1,257 stores. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada.

ING Groep Company Profile

ING Groep N.V., a financial institution, provides various banking products and services to individuals, small and medium-sized enterprises, and mid-corporates. It operates in Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking segments. The company accepts various deposits, such as current and savings accounts; and offers business lending products, as well as consumer lending products, such as residential mortgage loans, term loans, and revolver and personal loans. It also provides mortgage, payment, savings, investment, and secured and unsecured lending products and services. In addition, the company offers specialized lending, corporate finance, and debt and equity markets solutions, as well as working capital, cash management, and trade and treasury services; and financial market, trade finance, overdraft, and foreign exchange transaction services. The company operates in the Netherlands, Belgium, North America, Latin America, Asia, Australia, and rest of Europe. ING Groep N.V. was founded in 1991 and is headquartered in Amsterdam, the Netherlands.

Receive News & Ratings for Toronto-Dominion Bank Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Toronto-Dominion Bank and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply