LIVE
TD
The Toronto-Dominion Bank · Financials - Canadian Banking
$119.29
+10.55% this month
VERSUS
⟷
COMPARE
RY
Royal Bank of Canada · Financials - Canadian Banking
$201.56
+9.82% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
TD
3
RY
1
Comparison scoreboard
TD LEADS 3/5AI Score
TD 47.1
RY ✓50.3
1Y Return
TD ✓+70.40%
RY +59.81%
Fwd P/E
TD ✓11.10
RY 11.46
Target Up.
TD ✓-8.62%
RY -8.73%
Op. Margin
TD N/A
RY N/A
Metrics last refreshed: 6/20/2026
Quick take
TD vs RY Stock Comparison: AI Score, Valuation, Performance and Upside
RY is Canada's largest bank with the strongest capital markets franchise and high-net-worth banking through City National, while TD is Canada's second-largest bank with a uniquely large U.S. retail banking presence currently constrained by regulatory penalties and an asset cap. Both are premier, well-capitalized Canadian financial institutions.
TD vs RY compares Canada's two largest banks, with RBC offering balanced financial services breadth and TD offering a unique U.S. retail banking franchise currently working through regulatory remediation.
Live analysis · updated 6/20/2026
TD holds the edge across 3 of 5 key metrics in this comparison. TD leads on both 1-year return (+70.40%) and forward P/E (11.10x vs 11.46x for RY), a relatively favorable combination of momentum and valuation. Analyst consensus implies similar upside for both: -8.62% for TD and -8.73% for RY.
Normalized 1Y performance
TD
RY
Recent returns
TD
RY
Analyst price targets & sentiment
TD · 3 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.1/5.0)
Price target range
analyst low$96.13
analyst high$119.01
analyst mean$109.01
current price$119.29
-8.6% upside to analyst mean
RY · 3 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.0/5.0)
Price target range
analyst low$165.14
analyst high$194.12
analyst mean$183.96
current price$201.56
-8.7% upside to analyst mean
Who should consider this stock?
TD may suit investors who:
- →See value in TD's unique large-scale U.S. retail banking franchise once the regulatory overhang resolves
- →Believe the AML compliance remediation creates a temporary discount to TD's long-term franchise value
- →Want a contrarian investment in a premier Canadian bank navigating near-term headwinds
RY may suit investors who:
- →Want exposure to Canada's largest bank with broad financial services across banking, wealth, and capital markets
- →Value RBC Capital Markets' contribution to earnings diversification
- →Prefer a cleaner regulatory profile compared to TD's current U.S. AML situation
Performance & AI score
| Metric | TD | RY |
|---|---|---|
| AI score | 47.1 | 50.3 |
| AI rank | #629 | #450 |
| Latest close | $119.29 | $201.56 |
| 1M return | +10.55% | +9.82% |
| 6M return | +31.91% | +22.78% |
| 1Y return | +70.40% | +59.81% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | TD | RY |
|---|---|---|
| 1Y ago | $17.35K (+73.5%) started 2025-06-18 | $16.23K (+62.3%) started 2025-06-18 |
| 5Y ago | $25.9K (+159.0%) started 2021-06-18 | $28.25K (+182.5%) started 2021-06-18 |
| 10Y ago | $65.99K (+559.9%) started 2016-06-20 | $72.31K (+623.1%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | TD | RY |
|---|---|---|
| Market cap | $197.07B | $280.1B |
| Trailing P/E | 19.56 | 18.29 |
| Forward P/E | 11.10 | 11.46 |
| Price/Sales | 3.33 | 4.26 |
| EV/Revenue | 1.41 | -0.31 |
| Analyst target | $109.01 | $183.96 |
| Target upside | -8.62% | -8.73% |
Growth, profitability & risk
| Metric | TD | RY |
|---|---|---|
| Revenue growth | -31.50% | 16.10% |
| Earnings growth | -61.20% | 27.50% |
| EPS growth | -61.20% | +27.50% |
| FCF margin | N/A | N/A |
| Operating margin | N/A | N/A |
| Profit margin | 25.19% | 33.69% |
| ROIC proxy | 11.91% | 16.20% |
| Return on equity | 11.91% | 16.20% |
| Dividend yield | 3.59% | 2.53% |
| Beta | 0.88 | 0.94 |
| Debt/equity | N/A | N/A |
| Current ratio | N/A | N/A |
| Quick ratio | N/A | N/A |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
TD max drawdown7.50%
RY max drawdown10.04%
TD max wkly drop3.58%
RY max wkly drop4.43%
5Y risk snapshot
TD max drawdown31.16%
RY max drawdown28.69%
TD max wkly drop10.38%
RY max wkly drop10.19%
10Y risk snapshot
TD max drawdown41.98%
RY max drawdown39.95%
TD max wkly drop25.36%
RY max wkly drop23.05%
Performance metrics by period
| Period | Metric | TD | RY |
|---|---|---|---|
| 1Y | Growth | +70.40% | +59.81% |
| CAGR | +70.46% | +59.86% | |
| Sharpe ratio | 3.03 | 2.90 | |
| Max drawdown | 7.50% | 10.04% | |
| Max daily drop | 4.32% | 2.19% | |
| Max wkly drop | 3.58% | 4.43% | |
| 5Y | Growth | +107.83% | +135.42% |
| CAGR | +15.76% | +18.68% | |
| Sharpe ratio | 0.61 | 0.80 | |
| Max drawdown | 31.16% | 28.69% | |
| Max daily drop | 6.71% | 6.46% | |
| Max wkly drop | 10.38% | 10.19% | |
| 10Y | Growth | +306.29% | +372.17% |
| CAGR | +15.06% | +16.80% | |
| Sharpe ratio | 0.55 | 0.66 | |
| Max drawdown | 41.98% | 39.95% | |
| Max daily drop | 13.92% | 10.53% | |
| Max wkly drop | 25.36% | 23.05% |
Business comparison
| Category | TD | RY |
|---|---|---|
| Company | The Toronto-Dominion Bank | Royal Bank of Canada |
| Sector | Financials - Canadian Banking | Financials - Canadian Banking |
| Industry | N/A | N/A |
| Core business | TD Bank is Canada's second-largest bank by market capitalization, with a uniquely large U.S. retail banking presence through its TD Bank USA subsidiary, alongside Canadian personal and commercial banking, wealth management, and TD Securities wholesale banking. | Royal Bank of Canada is Canada's largest bank by market capitalization, providing personal and commercial banking, wealth management, capital markets, investor and treasury services, and insurance across Canada and internationally. |
| Investor focus | Investors track TD's Canadian banking loan growth and margin trends, U.S. banking segment performance and anti-money laundering compliance resolution, and earnings recovery trajectory after significant regulatory penalties. | Investors track RBC's personal and commercial banking loan growth and margins, capital markets performance, and the integration and benefits of its City National Bank acquisition in the U.S. |
TD strengths
- →Unique among Canadian banks for its large, established U.S. retail banking footprint along the Eastern Seaboard
- →Strong Canadian retail banking franchise with broad customer relationships
- →Diversified financial services spanning banking, wealth, and insurance in Canada
RY strengths
- →Canada's largest bank by market cap with the broadest financial services franchise
- →Strong capital markets (RBC Capital Markets) provides meaningful revenue diversification beyond retail banking
- →U.S. wealth management expansion through City National provides high-net-worth banking exposure
Risks to watch — TD
- →Significant AML (anti-money laundering) compliance failures in the U.S. resulted in substantial fines and growth restrictions on its U.S. banking subsidiary
- →U.S. banking segment faces an asset cap imposed by regulators, limiting near-term U.S. growth
- →Resolving the U.S. regulatory overhang is critical to restoring investor confidence and growth prospects
Risks to watch — RY
- →City National Bank (RBC's U.S. private banking acquisition) experienced significant credit losses requiring increased provisions
- →Canadian housing market and consumer credit exposure is a systemic risk consideration for all major Canadian banks
- →Premium valuation reflects franchise quality expectations
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