Reviewing Agri Bank China (OTCMKTS:ACGBY) and Toronto Dominion Bank (NYSE:TD)

Toronto Dominion Bank (NYSE:TD) and Agri Bank China (OTCMKTS:ACGBY) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Valuation and Earnings

This table compares Toronto Dominion Bank and Agri Bank China”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toronto Dominion Bank	$87.34 billion	1.97	$14.66 billion	$9.05	11.39
Agri Bank China	$188.76 billion	1.41	$40.49 billion	$2.71	7.02

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

Insider and Institutional Ownership

52.4% of Toronto Dominion Bank shares are held by institutional investors. 0.1% of Toronto Dominion Bank shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Toronto Dominion Bank and Agri Bank China, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toronto Dominion Bank	0	4	2	3	2.89
Agri Bank China	0	0	0	0	0.00

Toronto Dominion Bank presently has a consensus price target of $93.00, suggesting a potential downside of 9.81%. Given Toronto Dominion Bank’s stronger consensus rating and higher possible upside, research analysts clearly believe Toronto Dominion Bank is more favorable than Agri Bank China.

Dividends

Toronto Dominion Bank pays an annual dividend of $3.11 per share and has a dividend yield of 3.0%. Agri Bank China pays an annual dividend of $0.62 per share and has a dividend yield of 3.3%. Toronto Dominion Bank pays out 34.4% of its earnings in the form of a dividend. Agri Bank China pays out 22.9% 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. Toronto Dominion Bank has raised its dividend for 12 consecutive years. Agri Bank China is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Toronto Dominion Bank and Agri Bank China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toronto Dominion Bank	17.52%	14.29%	0.79%
Agri Bank China	21.45%	9.35%	0.63%

Risk and Volatility

Toronto Dominion Bank has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Agri Bank China has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500.

Summary

Toronto Dominion Bank beats Agri Bank China on 13 of the 18 factors compared between the two stocks.

About Toronto Dominion Bank

The Toronto-Dominion Bank, together with its subsidiaries, provides various financial products and services in Canada, the United States, and internationally. It operates through four segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. The company offers personal deposits, such as chequing, savings, and investment products; financing, investment, cash management, international trade, and day-to-day banking services to businesses; and financing options to customers at point of sale for automotive and recreational vehicle purchases. It also provides credit cards and payments; real estate secured lending, auto finance, and consumer lending services; point-of-sale payment solutions for large and small businesses; wealth and asset management products, and advice to retail and institutional clients through direct investing, advice-based, and asset management businesses; and property and casualty insurance, as well as life and health insurance products. The company also provides capital markets, and corporate and investment banking products and services, including underwriting and distribution of new debt and equity issues; advice on strategic acquisitions and divestitures; and trading, funding, and investment services to corporations, governments, and institutions. It offers its products and services under the TD Bank and America's Most Convenient Bank brand names. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada.

About Agri Bank China

Agricultural Bank of China Limited, together with its subsidiaries, provides banking products and services. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. It offers demand, personal call, foreign currency call, time or demand optional, foreign exchange call, foreign exchange time, savings, agreed term, and negotiated deposit accounts, as well as certificates of deposit; and loans, including housing, consumer, business, fixed asset, working capital, real estate, and entrusted syndicated loans, as well as trade finances, guarantees and commitments, and loans with custody of export rebates accounts. The company provides credit card, debit card, payment and settlement, private banking, cash management, investment banking, custody, financial market, and financial institution services, as well as trading and wealth management services; and personal fund collection and automatic transfer services. In addition, it offers agro-related personal and corporate banking products and services; telephone, mobile, self-service, television, and SMS banking services; financial leasing services; fund management services; asset custodian services; and insurance and reinsurance related products and services. The company operates domestic branches, including specialized institutions, training institutes, tier-1 branches, tier-2 branches, tier-1 sub-branches, foundation-level branch outlets and other establishments; overseas branches in Hong Kong, Singapore, Seoul, New York, Dubai International Financial Centre, Tokyo, Frankfurt, Sydney, Luxemburg, Dubai, London, Macao, and Hanoi; and overseas representative offices in Vancouver, Taipei, Sao Paulo, and Dushanbe. The company was founded in 1951 and is based in Beijing, the People's Republic of China.