TD (Toronto-Dominion Bank) vs S&P 500 Comparison

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S&P 500

JPM

601398

BAC

601288

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Toronto-Dominion Bank
Glance View

Economic Moat

None

Market Cap

103.7B USD

Industry

Banking

Toronto-Dominion Bank, commonly known as TD Bank, is a financial powerhouse that finds its roots in the bustling heart of Canada, emerging as a result of a historic 1955 merger between The Bank of Toronto and The Dominion Bank. With its headquarters nestled in Toronto, the institution has grown exponentially over the decades, weaving itself seamlessly into the intricate fabric of North American banking. TD Bank operates primarily through two divisions: Canadian Retail and U.S. Retail, offering a comprehensive suite of financial products and services. its customer base ranging from individuals and small businesses to large corporations. By strategically expanding its footprint through a series of acquisitions, TD Bank has cemented its reputation as a leading player in the banking sector, primarily resonating with its commitment to reliability and innovation. The bank's revenue streams are multifaceted, anchored primarily by traditional banking services such as loans, mortgages, and deposit accounts, where the interest margin between loans and deposits serves as a significant revenue engine. Beyond these conventional offerings, TD thrives in wealth management, providing asset management, insurance, and advisory services, thereby sculpting a diverse portfolio to mitigate market risk. It also delves into capital markets, trading equities, and underwriting securities—a testament to its dynamic approach to sustaining growth. As digital innovations reshape financial landscapes, TD Bank continues to invest heavily in technology to streamline operations and enhance customer experience, ensuring its resilience and adaptability in a rapidly evolving market. This strategic focus not only underscores its growth prospects but also illustrates its commitment to maintaining a strong, customer-focused ethos amidst an ever-changing financial ecosystem.

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TD Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

US		JPMorgan Chase & Co NYSE:JPM	Add
ZA	A	Absa Bank Ltd JSE:ABSP	Add
ZA	S	Standard Bank Group Ltd JSE:SBK	Add
ZA	C	Capitec Bank Holdings Ltd JSE:CPI	Add
CN		Industrial and Commercial Bank of China Ltd SSE:601398	Add
US		Bank of America Corp NYSE:BAC	Add
CN		Agricultural Bank of China Ltd SSE:601288	Add
US		Wells Fargo & Co NYSE:WFC	Add
CN		Bank of China Ltd SSE:601988	Add
UK		HSBC Holdings PLC LSE:HSBA	Add

US		JPMorgan Chase & Co NYSE:JPM	Select
ZA	A	Absa Bank Ltd JSE:ABSP	Select
ZA	S	Standard Bank Group Ltd JSE:SBK	Select
ZA	C	Capitec Bank Holdings Ltd JSE:CPI	Select
CN		Industrial and Commercial Bank of China Ltd SSE:601398	Select
US		Bank of America Corp NYSE:BAC	Select
CN		Agricultural Bank of China Ltd SSE:601288	Select
US		Wells Fargo & Co NYSE:WFC	Select
CN		Bank of China Ltd SSE:601988	Select
UK		HSBC Holdings PLC LSE:HSBA	Select

US		JPMorgan Chase & Co NYSE:JPM	Add
ZA	A	Absa Bank Ltd JSE:ABSP	Add
ZA	S	Standard Bank Group Ltd JSE:SBK	Add
ZA	C	Capitec Bank Holdings Ltd JSE:CPI	Add
CN		Industrial and Commercial Bank of China Ltd SSE:601398	Add
US		Bank of America Corp NYSE:BAC	Add
CN		Agricultural Bank of China Ltd SSE:601288	Add
US		Wells Fargo & Co NYSE:WFC	Add
CN		Bank of China Ltd SSE:601988	Add
UK		HSBC Holdings PLC LSE:HSBA	Add

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TD

vs

S&P 500

Stocks Performance
TD vs S&P 500

Performance Gap
TD vs S&P 500

Performance By Year
TD vs S&P 500

Competitors Performance
Toronto-Dominion Bank vs Peers

Toronto-Dominion Bank
Glance View

Company

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TD vs S&P 500

Stocks Performance TD vs S&P 500

Performance Gap TD vs S&P 500

Performance By Year TD vs S&P 500

Competitors Performance Toronto-Dominion Bank vs Peers

Toronto-Dominion Bank Glance View

Company

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Stocks

TD

vs

S&P 500

Stocks Performance
TD vs S&P 500

Performance Gap
TD vs S&P 500

Performance By Year
TD vs S&P 500

Competitors Performance
Toronto-Dominion Bank vs Peers

Toronto-Dominion Bank
Glance View