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Critical Analysis: Grupo Financiero Galicia (NASDAQ:GGAL) & Toronto-Dominion Bank (NYSE:TD) – Defense World

Written by Amanda

Grupo Financiero Galicia (NASDAQ:GGALGet Rating) and Toronto-Dominion Bank (NYSE:TDGet Rating) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares Grupo Financiero Galicia and Toronto-Dominion Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grupo Financiero Galicia N/A N/A N/A
Toronto-Dominion Bank 24.49% 15.98% 0.86%

Volatility and Risk

Grupo Financiero Galicia has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Toronto-Dominion Bank has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Valuation and Earnings

This table compares Grupo Financiero Galicia and Toronto-Dominion Bank’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grupo Financiero Galicia $5.11 billion 0.19 $326.49 million N/A N/A
Toronto-Dominion Bank $38.29 billion 3.03 $11.37 billion $6.42 10.00

Toronto-Dominion Bank has higher revenue and earnings than Grupo Financiero Galicia.

Dividends

Grupo Financiero Galicia pays an annual dividend of $0.30 per share and has a dividend yield of 4.5%. Toronto-Dominion Bank pays an annual dividend of $2.77 per share and has a dividend yield of 4.3%. Toronto-Dominion Bank pays out 43.1% of its earnings in the form of a dividend. Toronto-Dominion Bank has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Grupo Financiero Galicia and Toronto-Dominion Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grupo Financiero Galicia 1 0 1 0 2.00
Toronto-Dominion Bank 1 7 3 0 2.18

Grupo Financiero Galicia presently has a consensus target price of $14.65, suggesting a potential upside of 119.31%. Toronto-Dominion Bank has a consensus target price of $100.87, suggesting a potential upside of 57.12%. Given Grupo Financiero Galicia’s higher probable upside, analysts clearly believe Grupo Financiero Galicia is more favorable than Toronto-Dominion Bank.

Insider & Institutional Ownership

8.3% of Grupo Financiero Galicia shares are held by institutional investors. Comparatively, 50.0% of Toronto-Dominion Bank shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Toronto-Dominion Bank beats Grupo Financiero Galicia on 10 of the 14 factors compared between the two stocks.

Grupo Financiero Galicia Company Profile (Get Rating)

Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. The company’s products and services cover savings, current, and checking accounts; personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services. It also offers financing products and services; consumer finance services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, bills, and financial trusts. In addition, the company provides robbery, personal accident, life collective, home, life, integral pyme, pet, surety, various risks, and technical insurance products. Further, it offers private banking services to high net worth individuals; and operates digital investment platform. As of December 31, 2021, it had 312 full service banking branches; and 1,991 ATMs and self-service terminals. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.

Toronto-Dominion Bank Company Profile (Get Rating)

The Toronto-Dominion Bank, together with its subsidiaries, provides various financial products and services in Canada, the United States, and internationally. It operates through three segments: Canadian Retail, U.S. Retail, 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 company operates through a network of 1,061 branches and 3,381 automated teller machines (ATMs) in Canada, and 1,148 stores and 2,701 ATMs in the United States, as well as offers telephone, digital, and mobile banking services. It has a strategic alliance with Canada Post Corporation. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada.

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Source: defenseworld.net

About the author

Amanda

Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai