Business & Investment

Bank Stock Battle: TD Bank vs Royal Bank

Last week I talked about what it looks like Best bank stock To TSX just now. Today I would like to compare the two bank stocks on that list. Royal Bank (TSX: RY)(NYSE: RY) And Toronto-Dominion Bank (TSX: TD)(NYSE: TD) The two largest banks in Canada.I I chose TD Bank It is better than the former in August 2020. Which one is suitable for today’s purchase? Let’s dive.

Why TD Bank is a good bank stock to buy today

TD Bank is the second largest bank stock in TSX market capitalization. At the time of trading on the afternoon of January 25, the stock was up 3.5% year-on-year. Bank stocks suffered early in the 2020 COVID-19 pandemic. However, bank stocks were able to recover in a wider market. Investors can expect to see TD Bank’s first quarter 2021 report in late February.

TD Bank, like its peers, has achieved a strong finish towards the brutal 2020. It was supported by a significant drop in the allowance for doubtful accounts in the fourth quarter of 2020. Fourth-quarter net income increased from $ 2.9 billion to $ 5.1 billion. In the previous year. In addition, TD Bank has blown analysts’ expectations and posted adjusted earnings per share of $ 1.60 to conclude 2020.

TD Bank needs to continue to benefit from the improved Canadian economy and the US economy, which aims to aggressively resume in the coming quarters. In addition, TD Bank is looking forward to the major incentives underway in the United States.

Royal Bank: Still worth holding in the portfolio

Royal Bank is the largest TSX-listed bank stock and the largest market capitalization stock. Its share has so far increased by 2.6% in 2021. Investors can expect the results for the first quarter of 2021 to be February.

Canada’s top banks benefited from lower provisions for non-performing loans in the fourth quarter of 2020 and a sway in the equity market. The Royal Bank was no exception. Royal Bank’s profits in the fourth quarter of 2020 were $ 3.25 billion, up 1% year-on-year. Earnings per share was $ 2.27, which exceeded analysts’ expectations. Like its peers, Royal Bank thrived on good market conditions. Capital Markets earnings were $ 840 million, up 44% year-over-year.

Royal Bank CEO Dave McKay made a cautious tone with strong earnings reports. This is due to uncertainties in the domestic and global economies. Although the market has flourished in recent months, pandemic-related restrictions continue to have a significant impact on fundamentals.

Which is the better bank stock now?

Which Bank Stocks Are Good To Buy Today? TD Bank has a price-to-book value ratio of 11 and a price-to-book value ratio of 1.5. The bank share also offers a quarterly dividend of $ 0.79 per share. This corresponds to a yield of 4.3%.

On the other hand, Royal Bank has a price-earnings ratio of 13 and a price-earnings ratio of 1.9. It offers a quarterly distribution of $ 1.08 and represents a yield of 4%. TD Bank today has a narrow advantage value and income side. I’m now sticking to this bank stock as a better choice.

Investors also need to target these stocks today. .. ..

10 Best Stocks to Buy This Month

Ian Butler, a well-known Canadian investor, has nominated 10 shares for Canadians to buy today. So if you’re tired of reading about getting rich in the stock market, today may be a good day for you.
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Stupid contributor Ambrose O’Callahan It owns shares in ROYAL BANK OF CANADA and TORONTO-DOMINION BANK.

Bank Stock Battle: TD Bank vs Royal Bank

https://www.fool.ca/2021/01/25/bank-stock-battle-td-bank-vs-royal-bank/ Bank Stock Battle: TD Bank vs Royal Bank

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