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BMO vs TD
Which Stock Would AI Choose? Bank of Montreal (BMO) vs. Toronto-Dominion Bank (TD) Stock Comparison
Key Takeaways
- Both BMO and TD are major Canadian banks with significant U.S. operations, delivering strong year-to-date returns amid favorable interest rate environments and economic resilience.
- BMO has shown slightly stronger recent momentum, with higher year-to-date gains and multiple analyst price target increases in recent weeks.
- TD benefits from robust capital positions and ongoing share buyback programs, supporting relative stability in market sentiment.
- Key contrasts include BMO’s strategic divestitures of non-core units versus TD’s focus on efficiency improvements and U.S. retail banking expansion.
- Sector exposure to Canadian personal/commercial banking and U.S. wealth management remains a shared driver, with both stocks trading near 52-week highs.
- Market positioning favors banks demonstrating consistent earnings growth and capital return initiatives in the current environment.
Introduction
Bank of Montreal (BMO) and Toronto-Dominion Bank (TD) represent two leading Canadian financial institutions with substantial North American footprints. This comparison examines their recent performance, business models, and market positioning to assist investors and traders evaluating relative value in the banking sector. Professionals monitoring dividend yields, earnings trends, and macroeconomic influences, as well as those seeking diversified exposure to large-cap financials, may find the analysis relevant for portfolio allocation decisions.
BMO Overview and Recent Performance
Bank of Montreal operates as a diversified financial services provider across personal and commercial banking, wealth management, and capital markets. In recent weeks, the stock has advanced toward 52-week highs, supported by strong quarterly results and analyst upgrades. Strategic moves, including the sale of transportation and vendor finance businesses, have highlighted efforts to streamline operations and improve capital efficiency. Sentiment has benefited from record segment revenues and projected earnings per share growth, though valuations remain a point of market discussion.
TD Overview and Recent Performance
Toronto-Dominion Bank focuses on retail and commercial banking in Canada and the United States, alongside wealth and insurance segments. Recent market activity shows the shares trading near multi-year peaks, aided by upward revisions to price targets and positive commentary on net interest margins. Capital return programs, including share repurchases, have reinforced investor confidence. Performance reflects steady earnings momentum in core Canadian operations and gradual improvements in U.S. segments amid broader sector tailwinds.
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Head-to-Head Comparison
Both institutions share core exposures to Canadian banking and U.S. wealth management, yet differ in strategic emphasis. BMO has pursued targeted divestitures to enhance focus, while TD prioritizes operational efficiencies and buyback activity. Recent momentum appears modestly stronger for BMO based on year-to-date returns and analyst sentiment. Risk factors include interest rate sensitivity and credit quality trends for both, with sector-wide exposure to economic cycles. Market positioning reflects comparable stability, though trade-offs center on growth initiatives versus capital optimization.
Tickeron AI Verdict
Based on observable factors including trend consistency, earnings momentum, and relative analyst positioning in recent weeks, Tickeron’s AI models indicate a probabilistic preference for BMO over TD in the current environment. This assessment draws from stronger short-term technical signals and catalysts such as strategic portfolio adjustments, though outcomes remain subject to broader market developments.
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 BMO is a Buy and TD is a Buy.
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 undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
BMO’s FA Score shows that 3 FA rating(s) are green whileTD’s FA Score has 2 green FA rating(s).
- BMO’s FA Score: 3 green, 2 red.
- TD’s FA Score: 2 green, 3 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.
BMO’s TA Score shows that 4 TA indicator(s) are bullish while TD’s TA Score has 3 bullish TA indicator(s).
- BMO’s TA Score: 4 bullish, 3 bearish.
- TD’s TA Score: 3 bullish, 3 bearish.
Price Growth
BMO (@Major Banks) experienced а +2.84% price change this week, while TD (@Major Banks) price change was +1.91% for the same time period.
The average weekly price growth across all stocks in the @Major Banks industry was +0.98%. For the same industry, the average monthly price growth was +7.87%, and the average quarterly price growth was +16.30%.
Reported Earning Dates
BMO is expected to report earnings on Aug 25, 2026.
TD is expected to report earnings on Aug 27, 2026.
Industries' Descriptions
@Major Banks (+0.98% 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.
| BMO | TD | BMO / TD | |
| Capitalization | 121B | 198B | 61% |
| EBITDA | N/A | N/A | - |
| Gain YTD | 33.431 | 26.943 | 124% |
| P/E Ratio | 18.84 | 19.88 | 95% |
| Revenue | 37.5B | 63.8B | 59% |
| Total Cash | N/A | N/A | - |
| Total Debt | 288B | 474B | 61% |
BMO | TD | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 45 | 38 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 75 Overvalued | 77 Overvalued | |
PROFIT vs RISK RATING 1..100 | 33 | 36 | |
SMR RATING 1..100 | 5 | 4 | |
PRICE GROWTH RATING 1..100 | 41 | 40 | |
P/E GROWTH RATING 1..100 | 24 | 10 | |
SEASONALITY SCORE 1..100 | 45 | 50 |
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.
BMO's Valuation (75) in the Major Banks industry is in the same range as TD (77). This means that BMO’s stock grew similarly to TD’s over the last 12 months.
BMO's Profit vs Risk Rating (33) in the Major Banks industry is in the same range as TD (36). This means that BMO’s stock grew similarly to TD’s over the last 12 months.
TD's SMR Rating (4) in the Major Banks industry is in the same range as BMO (5). This means that TD’s stock grew similarly to BMO’s over the last 12 months.
TD's Price Growth Rating (40) in the Major Banks industry is in the same range as BMO (41). This means that TD’s stock grew similarly to BMO’s over the last 12 months.
TD's P/E Growth Rating (10) in the Major Banks industry is in the same range as BMO (24). This means that TD’s stock grew similarly to BMO’s over the last 12 months.
| BMO | TD | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 44% | 2 days ago 45% |
| Stochastic ODDS (%) | 2 days ago 48% | 2 days ago 45% |
| Momentum ODDS (%) | 6 days ago 63% | N/A |
| MACD ODDS (%) | 2 days ago 73% | 2 days ago 62% |
| TrendWeek ODDS (%) | 2 days ago 56% | 2 days ago 55% |
| TrendMonth ODDS (%) | 2 days ago 49% | 2 days ago 53% |
| Advances ODDS (%) | 2 days ago 52% | 2 days ago 53% |
| Declines ODDS (%) | N/A | N/A |
| BollingerBands ODDS (%) | 2 days ago 50% | 2 days ago 46% |
| Aroon ODDS (%) | 2 days ago 41% | 2 days ago 49% |
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BMO and
Correlation & Price change
A.I.dvisor indicates that over the last year, BMO has been closely correlated with BNS. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if BMO jumps, then BNS could also see price increases.
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 70% 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.