China CITIC Bank (OTCMKTS:CHCJY – Get Free Report) and Toronto Dominion Bank (NYSE:TD – Get Free Report) are both large-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Dividends
China CITIC Bank pays an annual dividend of $0.87 per share and has a dividend yield of 4.5%. Toronto Dominion Bank pays an annual dividend of $3.11 per share and has a dividend yield of 2.6%. China CITIC Bank pays out 25.7% of its earnings in the form of a dividend. Toronto Dominion Bank pays out 48.5% 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. China CITIC Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a summary of recent ratings and price targets for China CITIC Bank and Toronto Dominion Bank, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China CITIC Bank | 0 | 1 | 0 | 0 | 2.00 |
| Toronto Dominion Bank | 0 | 3 | 5 | 1 | 2.78 |
Profitability
This table compares China CITIC Bank and Toronto Dominion Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China CITIC Bank | 20.39% | 8.44% | 0.71% |
| Toronto Dominion Bank | 13.20% | 14.83% | 0.82% |
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, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares China CITIC Bank and Toronto Dominion Bank”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China CITIC Bank | $49.07 billion | 0.97 | $9.82 billion | $3.38 | 5.77 |
| Toronto Dominion Bank | $87.34 billion | 2.26 | $14.66 billion | $6.41 | 18.62 |
Toronto Dominion Bank has higher revenue and earnings than China CITIC Bank. China CITIC Bank 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.
Risk & Volatility
China CITIC Bank has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Toronto Dominion Bank has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Summary
Toronto Dominion Bank beats China CITIC Bank on 15 of the 18 factors compared between the two stocks.
About China CITIC Bank
China CITIC Bank Corporation Limited provides various banking products and services in the People's Republic of China and internationally. The company operates in segments, such as Corporate Banking, Retail Banking, and Financial Market business. It accepts deposits; offers corporate and personal loans; and provides securities agency, remittance and settlement, and guarantee services, as well as investment banking and international services. The company also engages in the capital markets operations and inter-bank operations, including inter-bank money market transactions, repurchase transactions, investments, and trading in debt instruments; and derivatives and forex trading. In addition, it offers asset management, finance leasing, wealth management, ageing finance, private banking, credit card, payroll, and other non-banking financial services. The company serves corporations, government agencies, and non-financial institutions; and individual customers and micro and small enterprises. The company operates tier-one branches, tier-two branches, and sub-branches; self-service banks; and self-service terminals, as well as smart teller machines. The company was founded in 1987 and is headquartered in Beijing, the People's Republic of China. China CITIC Bank Corporation Limited operates as a subsidiary of CITIC Financial Holdings Co., Ltd.
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.
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