Head to Head Analysis: Toronto Dominion Bank (NYSE:TD) versus UBS Group (NYSE:UBS)

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

Profitability

This table compares Toronto Dominion Bank and UBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toronto Dominion Bank	16.40%	13.59%	0.73%
UBS Group	9.21%	7.17%	0.39%

Risk and Volatility

Toronto Dominion Bank has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Insider & Institutional Ownership

52.4% of Toronto Dominion Bank shares are held by institutional investors. 0.1% of Toronto Dominion Bank shares are held by company insiders. Comparatively, 1.0% of UBS Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Toronto Dominion Bank and UBS Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toronto Dominion Bank	$88.27 billion	1.56	$6.50 billion	$8.56	9.48
UBS Group	$84.56 billion	1.56	$5.09 billion	$1.89	21.77

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Toronto Dominion Bank and UBS Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toronto Dominion Bank	1	3	5	0	2.44
UBS Group	1	4	6	2	2.69

Toronto Dominion Bank currently has a consensus price target of $93.00, suggesting a potential upside of 14.63%. Given Toronto Dominion Bank’s higher possible upside, analysts plainly believe Toronto Dominion Bank is more favorable than UBS Group.

Summary

Toronto Dominion Bank beats UBS Group on 9 of the 15 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 UBS Group

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.