Toronto Dominion Bank (NYSE:TD – Get Free Report) and Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Dividends
Toronto Dominion Bank pays an annual dividend of $3.11 per share and has a dividend yield of 2.9%. Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.75 per share and has a dividend yield of 4.3%. Toronto Dominion Bank pays out 34.4% of its earnings in the form of a dividend. Industrial & Commercial Bank of China Ltd. pays out 26.4% 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 raised its dividend for 12 consecutive years. Industrial & Commercial Bank of China Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Toronto Dominion Bank and Industrial & Commercial Bank of China Ltd.”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Toronto Dominion Bank | $87.34 billion | 2.05 | $14.66 billion | $9.05 | 11.92 |
| Industrial & Commercial Bank of China Ltd. | $208.16 billion | 1.51 | $51.27 billion | $2.84 | 6.19 |
Industrial & Commercial Bank of China Ltd. has higher revenue and earnings than Toronto Dominion Bank. Industrial & Commercial Bank of China Ltd. 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.
Analyst Recommendations
This is a breakdown of recent recommendations for Toronto Dominion Bank and Industrial & Commercial Bank of China Ltd., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Toronto Dominion Bank | 0 | 3 | 4 | 2 | 2.89 |
| Industrial & Commercial Bank of China Ltd. | 0 | 1 | 0 | 0 | 2.00 |
Toronto Dominion Bank currently has a consensus target price of $93.00, indicating a potential downside of 13.81%. Given Toronto Dominion Bank’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Toronto Dominion Bank is more favorable than Industrial & Commercial Bank of China Ltd..
Institutional & Insider Ownership
52.4% of Toronto Dominion Bank shares are held by institutional investors. 0.1% of Toronto Dominion Bank shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Toronto Dominion Bank and Industrial & Commercial Bank of China Ltd.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Toronto Dominion Bank | 17.52% | 14.29% | 0.79% |
| Industrial & Commercial Bank of China Ltd. | 24.78% | 8.95% | 0.71% |
Risk & Volatility
Toronto Dominion Bank has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Industrial & Commercial Bank of China Ltd. has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.
Summary
Toronto Dominion Bank beats Industrial & Commercial Bank of China Ltd. on 13 of the 18 factors compared between the two stocks.
About Toronto Dominion Bank
The Toronto-Dominion Bank, together with its subsidiaries, provides various financial products and services in Canada, the United States, and internationally. It operates through four segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. The company offers personal deposits, such as chequing, savings, and investment products; financing, investment, cash management, international trade, and day-to-day banking services to businesses; and financing options to customers at point of sale for automotive and recreational vehicle purchases. It also provides credit cards and payments; real estate secured lending, auto finance, and consumer lending services; point-of-sale payment solutions for large and small businesses; wealth and asset management products, and advice to retail and institutional clients through direct investing, advice-based, and asset management businesses; and property and casualty insurance, as well as life and health insurance products. The company also provides capital markets, and corporate and investment banking products and services, including underwriting and distribution of new debt and equity issues; advice on strategic acquisitions and divestitures; and trading, funding, and investment services to corporations, governments, and institutions. It offers its products and services under the TD Bank and America's Most Convenient Bank brand names. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada.
About Industrial & Commercial Bank of China Ltd.
Industrial and Commercial Bank of China Limited, together with its subsidiaries, provides banking products and services in the People's Republic of China and internationally. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. The Corporate Banking segment offers financial products and services to corporations, government agencies, and financial institutions. Its products and services include trade financing, deposit, corporate wealth management, custody, and various corporate intermediary services, as well as corporate loans. Its Personal Banking segment provides financial products and services to individual customers. This segment's products and services comprise personal loans and cards, deposits, and personal wealth management and intermediary services. The Treasury Business segment is involved in the money market transactions, investment securities, and proprietary and foreign exchange transactions businesses. It also offers e-banking services, investment banking, financial leasing, and insurance services. Industrial and Commercial Bank of China Limited was incorporated in 1984 and is based in Beijing, the People's Republic of China.
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