Toronto Dominion Bank (TD) vs. Bear State Financial (BSF) Head-To-Head Review

Toronto Dominion Bank (NYSE: TD) and Bear State Financial (NASDAQ:BSF) are both financials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Toronto Dominion Bank and Bear State Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Toronto Dominion Bank 0 2 7 0 2.78
Bear State Financial 0 0 0 0 N/A

Toronto Dominion Bank currently has a consensus target price of $80.00, indicating a potential upside of 39.62%. Given Toronto Dominion Bank’s higher possible upside, equities analysts clearly believe Toronto Dominion Bank is more favorable than Bear State Financial.

Risk and Volatility

Toronto Dominion Bank has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Bear State Financial has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Earnings and Valuation

This table compares Toronto Dominion Bank and Bear State Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Toronto Dominion Bank $34.52 billion 3.06 $7.95 billion $4.38 13.08
Bear State Financial $103.10 million 3.75 $20.40 million $0.55 18.60

Toronto Dominion Bank has higher revenue and earnings than Bear State Financial. Toronto Dominion Bank is trading at a lower price-to-earnings ratio than Bear State Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Toronto Dominion Bank and Bear State Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Toronto Dominion Bank 23.09% 15.17% 0.86%
Bear State Financial 19.79% 10.10% 1.11%

Dividends

Toronto Dominion Bank pays an annual dividend of $1.95 per share and has a dividend yield of 3.4%. Bear State Financial pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Toronto Dominion Bank pays out 44.5% of its earnings in the form of a dividend. Bear State Financial pays out 21.8% 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.

Insider and Institutional Ownership

48.6% of Toronto Dominion Bank shares are owned by institutional investors. Comparatively, 12.0% of Bear State Financial shares are owned by institutional investors. 45.7% of Bear State Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Toronto Dominion Bank beats Bear State Financial on 9 of the 15 factors compared between the two stocks.

About Toronto Dominion Bank

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.

About Bear State Financial

Bear State Financial, Inc. is a bank holding company. The Company’s subsidiary Bear State Bank, N.A. (the Bank) is a community-oriented financial institution, which offers a range of retail and business deposit accounts, including noninterest bearing and interest bearing checking accounts, savings and money market accounts, certificates of deposit and individual retirement accounts. The Loan products offered by the Bank include residential real estate loans, consumer loans, construction loans, lines of credit, commercial real estate loans, and commercial business loans. The Bank’s other financial services include automated teller machines; around the clock telephone banking; online banking, including account access, bill payment and e-statements; mobile banking, including remote deposit capture and funds transfer; Bounce Protection overdraft services; debit cards, and safe deposit boxes.

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