Riverview Bancorp (NASDAQ: RVSB) and Toronto Dominion Bank (The) (NYSE:TD) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitabiliy and institutional ownership.

Insider & Institutional Ownership

53.8% of Riverview Bancorp shares are owned by institutional investors. Comparatively, 52.6% of Toronto Dominion Bank (The) shares are owned by institutional investors. 7.4% of Riverview Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Riverview Bancorp and Toronto Dominion Bank (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Riverview Bancorp 0 0 1 0 3.00
Toronto Dominion Bank (The) 0 4 6 0 2.60

Riverview Bancorp currently has a consensus price target of $6.00, indicating a potential downside of 15.49%. Toronto Dominion Bank (The) has a consensus price target of $62.50, indicating a potential upside of 19.94%. Given Toronto Dominion Bank (The)’s higher possible upside, analysts plainly believe Toronto Dominion Bank (The) is more favorable than Riverview Bancorp.

Risk & Volatility

Riverview Bancorp has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, Toronto Dominion Bank (The) has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Riverview Bancorp and Toronto Dominion Bank (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Riverview Bancorp 16.22% 6.71% 0.73%
Toronto Dominion Bank (The) 22.56% 14.09% 0.82%

Dividends

Riverview Bancorp pays an annual dividend of $0.09 per share and has a dividend yield of 1.3%. Toronto Dominion Bank (The) pays an annual dividend of $1.85 per share and has a dividend yield of 3.6%. Riverview Bancorp pays out 27.3% of its earnings in the form of a dividend. Toronto Dominion Bank (The) pays out 48.2% 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.

Earnings & Valuation

This table compares Riverview Bancorp and Toronto Dominion Bank (The)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Riverview Bancorp $43.35 million 3.68 $7.42 million $0.33 21.52
Toronto Dominion Bank (The) $25.72 billion 3.73 $7.08 billion $3.84 13.57

Toronto Dominion Bank (The) has higher revenue and earnings than Riverview Bancorp. Toronto Dominion Bank (The) is trading at a lower price-to-earnings ratio than Riverview Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Toronto Dominion Bank (The) beats Riverview Bancorp on 11 of the 16 factors compared between the two stocks.

About Riverview Bancorp

Riverview Bancorp, Inc. (Riverview) is a savings and loan holding company of Riverview Community Bank (the Bank). The Company operates through two segments, which include banking operations performed by the Bank and trust and investment services performed by Riverview Asset Management Corp. (RAMCorp). The Company is engaged in the business of attracting deposits from the general public and using such funds in its primary market area to originate commercial business, commercial real estate, multi-family real estate, land, real estate construction, residential real estate and other consumer loans. Additionally, RAMCorp offers trust and investment services. Riverview Mortgage, a mortgage broker division of the Bank, originates mortgage loans for various mortgage companies in the Vancouver/Portland metropolitan areas, as well as for the Bank. The Bank’s Business and Professional Banking Division offers commercial and business banking services. It operates from over 20 branch offices.

About Toronto Dominion Bank (The)

Toronto-Dominion Bank (the Bank) is a Canada-based bank, which operates in the North America. It is an online financial services firm, with over 10.2 million online and mobile customers. Its segments include Canadian Retail, U.S. Retail, Wholesale Banking and Corporate. The Canadian Retail segment provides a range of financial products and services to customers in the Canadian personal and commercial banking businesses. The U.S. Retail segment consists of its retail and commercial banking operations operating under the brand TD Bank, and wealth management services in the United States. The Wholesale Banking segment provides a range of capital markets, investment banking, and corporate banking products and services, including underwriting and distribution of new debt and equity issues, providing advice on strategic acquisitions and divestitures, funding and investment needs of its clients. The Corporate segment provides centralized advice and counsel to its businesses.

Receive News & Ratings for Riverview Bancorp Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Riverview Bancorp Inc and related companies with MarketBeat.com's FREE daily email newsletter.