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RY vs TD
Which Stock Would AI Choose? Royal Bank of Canada (RY) vs. Toronto-Dominion Bank (TD) Stock Comparison
Key Takeaways
- Royal Bank of Canada (RY) and Toronto-Dominion Bank (TD) are Canada’s two largest banks by assets, offering diversified operations across retail, commercial, wealth management, and capital markets.
- In recent market activity, TD has delivered stronger year-to-date total returns compared with RY, supported by multiple analyst upgrades and raised price targets.
- RY maintains a leading market position with consistent earnings from personal and commercial banking, alongside initiatives such as a planned C$1 billion growth fund for domestic companies.
- Both stocks have traded near 52-week highs amid broader Canadian bank sector resilience, with RY showing slightly lower volatility in longer-term performance metrics.
- Analyst sentiment in recent weeks has tilted more favorably toward TD on cost-efficiency and buyback momentum, while RY benefits from scale and international diversification.
- Relative performance reflects trade-offs between RY’s stability and TD’s recent momentum in a higher-interest-rate environment.
Introduction
Investors and traders frequently compare Royal Bank of Canada (RY) and Toronto-Dominion Bank (TD) because the two institutions dominate the Canadian banking sector and provide exposure to similar macroeconomic drivers such as interest rates, housing markets, and cross-border commerce. This comparison is particularly relevant for those seeking large-cap financials with dividend income, defensive characteristics during economic uncertainty, and varying degrees of U.S. and international revenue. The analysis below examines recent stock behavior, business models, and market positioning to highlight observable differences without forward-looking speculation.
RY Overview and Recent Performance
Royal Bank of Canada (RY) is Canada’s largest bank by market capitalization and offers a broad range of services including personal and commercial banking, wealth management, insurance, and capital markets. In recent weeks, the stock has traded near the upper end of its 52-week range, reflecting resilience amid sector-wide movements. Performance has been supported by steady contributions from domestic retail operations and international wealth platforms. Recent developments include shareholder approval of board and auditor matters at the annual meeting and a Fitch upgrade on certain debt instruments, alongside plans announced earlier in the spring to deploy up to C$1 billion toward equity investments in Canadian companies. These factors have contributed to stable sentiment around the name.
TD Overview and Recent Performance
Toronto-Dominion Bank (TD) ranks among Canada’s leading financial institutions, with significant operations in retail and commercial banking, wealth management, and U.S. regional banking. In recent market activity, the shares have recorded stronger year-to-date gains relative to peers, trading close to 52-week highs. Performance has been aided by higher net interest income and ongoing cost-management initiatives. Recent weeks have featured several analyst upgrades and increased price targets, reflecting positive views on capital return programs and operational efficiency. The stock’s movement has aligned with broader Canadian bank outperformance in a period of moderating inflation concerns and steady domestic economic indicators.
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Head-to-Head Comparison
Royal Bank of Canada (RY) and Toronto-Dominion Bank (TD) share core exposures to Canadian retail banking and wealth management, yet differ in scale and geographic emphasis. RY maintains a larger overall asset base and broader international footprint, which can provide relative stability during domestic economic fluctuations. TD has a more pronounced U.S. regional banking presence and has recently attracted more frequent upward revisions to price targets. In recent momentum, TD has outpaced RY on a year-to-date basis, while RY has exhibited marginally lower beta to broader market swings over longer intervals. Risk factors for both include interest-rate sensitivity and regulatory capital requirements, with RY’s larger size offering potential advantages in funding costs and TD’s recent buyback activity supporting capital return visibility. Market sentiment has favored TD’s near-term catalysts, while RY continues to benefit from its established leadership position.
Tickeron AI Verdict
Based on observable factors such as recent price consistency near highs, frequency of positive analyst revisions, and relative year-to-date outperformance, Tickeron’s AI models currently assign a modestly higher probability of favorable near-term positioning to Toronto-Dominion Bank (TD) over Royal Bank of Canada (RY). RY remains competitive on stability metrics and scale-driven resilience. This assessment reflects pattern recognition from historical and current data rather than any guarantee of future results.
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 RY is a StrongBuy and TD is a StrongBuy.
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).
RY’s FA Score shows that 2 FA rating(s) are green whileTD’s FA Score has 1 green FA rating(s).
- RY’s FA Score: 2 green, 3 red.
- TD’s FA Score: 1 green, 4 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.
RY’s TA Score shows that 4 TA indicator(s) are bullish while TD’s TA Score has 3 bullish TA indicator(s).
- RY’s TA Score: 4 bullish, 4 bearish.
- TD’s TA Score: 3 bullish, 5 bearish.
Price Growth
RY (@Major Banks) experienced а +3.42% price change this week, while TD (@Major Banks) price change was +1.90% for the same time period.
The average weekly price growth across all stocks in the @Major Banks industry was +0.35%. For the same industry, the average monthly price growth was +4.13%, and the average quarterly price growth was +12.30%.
Reported Earning Dates
RY is expected to report earnings on Aug 27, 2026.
TD is expected to report earnings on Aug 27, 2026.
Industries' Descriptions
@Major Banks (+0.35% 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.
| RY | TD | RY / TD | |
| Capitalization | 275B | 189B | 146% |
| EBITDA | N/A | N/A | - |
| Gain YTD | 15.907 | 21.550 | 74% |
| P/E Ratio | 17.92 | 18.74 | 96% |
| Revenue | 69.5B | 63.8B | 109% |
| Total Cash | N/A | N/A | - |
| Total Debt | 574B | 474B | 121% |
RY | TD | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 82 | 23 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 89 Overvalued | 76 Overvalued | |
PROFIT vs RISK RATING 1..100 | 16 | 37 | |
SMR RATING 1..100 | 100 | 100 | |
PRICE GROWTH RATING 1..100 | 41 | 40 | |
P/E GROWTH RATING 1..100 | 29 | 12 | |
SEASONALITY SCORE 1..100 | 50 | 35 |
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.
TD's Valuation (76) in the Major Banks industry is in the same range as RY (89). This means that TD’s stock grew similarly to RY’s over the last 12 months.
RY's Profit vs Risk Rating (16) in the Major Banks industry is in the same range as TD (37). This means that RY’s stock grew similarly to TD’s over the last 12 months.
RY's SMR Rating (100) in the Major Banks industry is in the same range as TD (100). This means that RY’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 RY (41). This means that TD’s stock grew similarly to RY’s over the last 12 months.
TD's P/E Growth Rating (12) in the Major Banks industry is in the same range as RY (29). This means that TD’s stock grew similarly to RY’s over the last 12 months.
| RY | TD | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 40% | 2 days ago 47% |
| Stochastic ODDS (%) | 7 days ago 50% | 2 days ago 48% |
| Momentum ODDS (%) | 6 days ago 45% | 6 days ago 55% |
| MACD ODDS (%) | 2 days ago 55% | 2 days ago 51% |
| TrendWeek ODDS (%) | 2 days ago 44% | 2 days ago 54% |
| TrendMonth ODDS (%) | 2 days ago 38% | 2 days ago 52% |
| Advances ODDS (%) | 2 days ago 47% | 2 days ago 53% |
| Declines ODDS (%) | 14 days ago 53% | about 1 month ago 53% |
| BollingerBands ODDS (%) | 2 days ago 24% | 2 days ago 54% |
| Aroon ODDS (%) | 2 days ago 34% | 2 days ago 48% |
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RY and
Correlation & Price change
A.I.dvisor indicates that over the last year, RY has been closely correlated with CM. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if RY jumps, then CM 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.