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BAC vs TD
Which Stock Would AI Choose? Bank of America (BAC) vs. Toronto-Dominion Bank (TD) Stock Comparison
Key Takeaways
- Momentum gap: TD has delivered strong relative performance, trading near 52-week highs, while BAC has lagged recently amid a regulatory settlement.
- Regulatory context: Both banks face anti-money laundering (AML) overhangs, but TD's predates the current period while BAC's $1.2 billion penalty is more immediate.
- Business mix: BAC is a U.S.-centric, globally diversified lender; TD derives the majority of its revenue from Canada with a large U.S. retail footprint.
- Earnings quality: BAC's net interest income (NII) is growing, but recent results missed estimates; TD has been beating expectations.
- Valuation contrast: BAC trades at a lower earnings multiple, while TD commands a premium valuation reflecting its momentum.
Introduction
This stock comparison examines two of North America's largest diversified banks: Bank of America and Toronto-Dominion Bank. Although both operate in retail, commercial, and capital-markets banking, their geographic exposures, regulatory situations, and recent market positioning differ meaningfully. Traders assessing relative performance and investors weighing sector exposure may find the contrast instructive—one name is contending with a fresh regulatory penalty, while the other is benefiting from improving sentiment and proximity to record levels. Understanding how each institution is navigating the current environment helps clarify which risk-reward profile aligns with different objectives.
BAC Overview and Recent Performance
Bank of America, headquartered in Charlotte, North Carolina, is a diversified financial institution spanning consumer banking, global wealth and investment management, global banking, and global markets. It holds one of the largest U.S. deposit franchises and a sizable balance sheet exceeding $3 trillion.
Recent market activity has been pressured. The company's latest quarterly results came in slightly below analyst expectations, with revenue up about 3% year over year but short of consensus. A central factor was a roughly $1.2 billion settlement tied to AML and sanctions-reporting lapses, which weighed on reported earnings per share (EPS). Management has emphasized that remediation resources are already funded and that no asset cap limits growth. Encouragingly, NII—the spread between what the bank earns on loans and pays on deposits—rose roughly 8% year over year, while trading income showed weakness in fixed income. In recent weeks, the stock has trended lower and sits well below its 52-week high, reflecting the compliance overhang.
TD Overview and Recent Performance
Toronto-Dominion Bank is Canada's second-largest bank and one of the largest U.S. retail banks, operating across Canadian personal and commercial banking, U.S. retail, wealth management and insurance, and wholesale banking. Roughly half of its revenue originates in Canada, with a substantial share from its U.S. East Coast footprint.
Relative performance has been notably stronger. TD has appreciated significantly over the past year and trades near its 52-week high, supported by solid quarterly results that have generally exceeded expectations and a stable Common Equity Tier 1 (CET1) capital ratio—a key measure of a bank's financial strength. Under new leadership, the bank continues remediating its U.S. AML systems and repositioning its U.S. balance sheet under an asset cap imposed after a prior settlement. It also monetized its stake in Charles Schwab, freeing capital for share buybacks. Sentiment has improved through recent weeks, though the stock has consolidated modestly from its peak in the latest stretch.
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Head-to-Head Comparison
The two banks diverge sharply on geography and momentum. BAC is predominantly U.S.-focused with global capital-markets scale, making it more sensitive to U.S. rate moves and trading volumes. TD is more diversified across Canada and the U.S., with a comparatively larger domestic retail moat in Canada and greater currency and cross-border considerations.
On growth drivers, BAC is leaning on rising NII, deposit repricing, and digital adoption, while TD is benefiting from Canadian market strength and capital redeployment after its Schwab divestiture. Risk profiles differ too: BAC's fresh AML penalty and fee-income miss are near-term overhangs, whereas TD's asset cap—though pre-existing—constrains U.S. balance-sheet growth and is a longer-term structural consideration.
Valuation and sentiment present a trade-off. BAC trades at a lower price-to-earnings (P/E) multiple, potentially reflecting the recent regulatory discount. TD carries a higher multiple, backed by stronger recent momentum and proximity to record highs. Sector-wide, both remain exposed to credit-cycle and interest-rate dynamics across North American banking.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely lean toward TD in the current environment. TD exhibits more consistent trend strength, relative outperformance, a stable CET1 capital position, and earnings that have been exceeding expectations—factors that typically align with sustained momentum signals. BAC presents a different profile: a lower valuation and improving NII, but with a fresh regulatory overhang and weaker near-term price action that may translate into less favorable trend consistency in the short run. That said, this is a probabilistic assessment of relative positioning rather than a definitive forecast, and the balance of factors could shift as each bank's catalysts evolve.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is BAC is a StrongBuy and TD is a StrongBuy.
BAC's RSI Indicator remains in oversold zone for 7 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +0.87% 3-day Advance, the price is estimated to grow further. Considering data from situations where BAC advanced for three days, in 212 of 340 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
BAC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for BAC turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 26 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 55%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BAC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Aroon Indicator for BAC entered a downward trend on October 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 2 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 51 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.281) is normal, around the industry mean (1.520). P/E Ratio (11.491) is within average values for comparable stocks, (11.774). Projected Growth (PEG Ratio) (0.873) is also within normal values, averaging (2.139). Dividend Yield (0.025) settles around the average of (0.034) among similar stocks. P/S Ratio (3.643) is also within normal values, averaging (3.867).
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. BAC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 62 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 21, placing this stock slightly worse than average.
The Tickeron PE Growth Rating for this company is 63 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
TD's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for TD turned positive on October 14, 2026. Looking at past instances where TD's MACD turned positive, the stock continued to rise in 31 of 51 cases over the following month. The odds of a continued upward trend are 61%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on TD as a result. In 42 of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 56%.
TD moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TD crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 57%.
Following a +2.45% 3-day Advance, the price is estimated to grow further. Considering data from situations where TD advanced for three days, in 175 of 346 cases, the price rose further within the following month. The odds of a continued upward trend are 51%.
The Aroon Indicator entered an Uptrend today. In 189 of 360 cases where TD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
TD broke above its upper Bollinger Band on October 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 14 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 23 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 21, placing this stock worse than average.
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. TD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.789) is normal, around the industry mean (1.520). P/E Ratio (13.299) is within average values for comparable stocks, (11.774). Projected Growth (PEG Ratio) (1.006) is also within normal values, averaging (2.139). Dividend Yield (0.025) settles around the average of (0.034) among similar stocks. P/S Ratio (4.318) is also within normal values, averaging (3.867).
BAC | TD | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 16 | 36 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 51 Fair valued | 71 Overvalued | |
PROFIT vs RISK RATING 1..100 | 62 | 23 | |
SMR RATING 1..100 | 2 | 3 | |
PRICE GROWTH RATING 1..100 | 61 | 40 | |
P/E GROWTH RATING 1..100 | 63 | 14 | |
SEASONALITY SCORE 1..100 | n/a | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
BAC's Valuation (51) in the Major Banks industry is in the same range as TD (71). This means that BAC’s stock grew similarly to TD’s over the last 12 months.
TD's Profit vs Risk Rating (23) in the Major Banks industry is somewhat better than the same rating for BAC (62). This means that TD’s stock grew somewhat faster than BAC’s over the last 12 months.
BAC's SMR Rating (2) in the Major Banks industry is in the same range as TD (3). This means that BAC’s stock grew similarly to TD’s over the last 12 months.
TD's Price Growth Rating (40) in the Major Banks industry is in the same range as BAC (61). This means that TD’s stock grew similarly to BAC’s over the last 12 months.
TD's P/E Growth Rating (14) in the Major Banks industry is somewhat better than the same rating for BAC (63). This means that TD’s stock grew somewhat faster than BAC’s over the last 12 months.
| BAC | TD | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 82% | 1 day ago 45% |
| Stochastic ODDS (%) | 1 day ago 73% | 1 day ago 40% |
| Momentum ODDS (%) | N/A | 1 day ago 56% |
| MACD ODDS (%) | 1 day ago 55% | 1 day ago 61% |
| TrendWeek ODDS (%) | 1 day ago 62% | 1 day ago 53% |
| TrendMonth ODDS (%) | 1 day ago 55% | 1 day ago 54% |
| Advances ODDS (%) | 3 days ago 62% | 3 days ago 51% |
| Declines ODDS (%) | 6 days ago 61% | 25 days ago 49% |
| BollingerBands ODDS (%) | 1 day ago 73% | 1 day ago 43% |
| Aroon ODDS (%) | 1 day ago 63% | 1 day ago 52% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
BAC’s FA Score shows that 1 FA rating(s) are green while TD’s FA Score has 3 green FA rating(s).
- BAC’s FA Score: 1 green, 4 red.
- TD’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
BAC’s TA Score shows that 4 TA indicator(s) are bullish while TD’s TA Score has 6 bullish TA indicator(s).
- BAC’s TA Score: 4 bullish, 3 bearish.
- TD’s TA Score: 6 bullish, 4 bearish.
Price Growth
BAC (@Major Banks) experienced а -1.31% price change this week, while TD (@Major Banks) price change was +3.51% for the same time period.
The average weekly price growth across all stocks in the @Major Banks industry was -1.20%. For the same industry, the average monthly price growth was -4.06%, and the average quarterly price growth was +10.05%.
Reported Earning Dates
BAC is expected to report earnings on Jan 15, 2027.
TD is expected to report earnings on Dec 03, 2026.
Industries' Descriptions
@Major Banks (-1.20% weekly)Major banks are among the biggest companies in the world, often times with global reach and market capitalizations in the multi-billions. Large banks often have multiple arms spanning different disciplines, from deposits, to investment banking, to wealth management and insurance. The biggest banks often have key competitive advantages over smaller players in the industry in terms of brand recognition, cost of capital, and efficiency. Think J.P. Morgan, Bank of America, Wells Fargo, and Citigroup.
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TD and
Correlation & Price change
A.I.dvisor indicates that over the last year, TD has been closely correlated with RY. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if TD jumps, then RY could also see price increases.