Charles Schwab vs TD

This page compares Charles Schwab Corp., The and TD (Toronto-Dominion Bank) across business models, financial performance, and market context. It presents neutral, accessible analysis to help readers understand how these firms operate and influence their markets. Educational content, not financial advice.

This page compares Charles Schwab Corp., The and TD (Toronto-Dominion Bank) across business models, financial performance, and market context. It presents neutral, accessible analysis to help readers ...

Comparison Snapshot

Key Financial Metrics

SCHW

Metric

TD

$182.92B

Market Cap

$159.22B

8.36%

Potential Profit

-37.71%

Buy

Analyst Rating

Buy

Why It's Moving

Charles Schwab Delivers Record Q4 Results and Strategic AI, Forge Advances Fueling Post-Earnings Rally

Q4 core net new assets hit $163.9 billion while active brokerage accounts reached 38.5 million, signaling robust client growth and engagement.
Forge Global deal approval paves the way for expanded private market access, set to close in H1 2026 pending regulators, bolstering Schwab's alternatives offerings.
Zacks upgraded SCHW to Buy on rising earnings estimates, up 5.5% in three months, reflecting optimism for steady 2026 EPS at $5.73.

Sentiment:

🐃Bullish

TD Bank Secures Green Light for $7 Billion Share Buyback, Signaling Strong Capital Confidence

Fresh $7B buyback approval allows repurchases through January 2027 or until limits hit, following completion of previous $8B program at $99.74 average price per share.
Automatic share purchase plan with TD Securities to handle buys during blackout periods, ensuring flexible execution.
Concurrent redemption of $1.25B 4.859% NVCC medium-term notes due 2031, optimizing capital structure without market disruption.

Sentiment:

🐃Bullish

Charles Schwab Delivers Record Q4 Results and Strategic AI, Forge Advances Fueling Post-Earnings Rally

Q4 core net new assets hit $163.9 billion while active brokerage accounts reached 38.5 million, signaling robust client growth and engagement.
Forge Global deal approval paves the way for expanded private market access, set to close in H1 2026 pending regulators, bolstering Schwab's alternatives offerings.
Zacks upgraded SCHW to Buy on rising earnings estimates, up 5.5% in three months, reflecting optimism for steady 2026 EPS at $5.73.

Sentiment:

🐃Bullish

TD Bank Secures Green Light for $7 Billion Share Buyback, Signaling Strong Capital Confidence

Fresh $7B buyback approval allows repurchases through January 2027 or until limits hit, following completion of previous $8B program at $99.74 average price per share.
Automatic share purchase plan with TD Securities to handle buys during blackout periods, ensuring flexible execution.
Concurrent redemption of $1.25B 4.859% NVCC medium-term notes due 2031, optimizing capital structure without market disruption.

Sentiment:

🐃Bullish

Investment Analysis

Charles Schwab

SCHW

Pros

Charles Schwab delivered strong top- and bottom-line growth in 2025, with revenue up 27% year-over-year and adjusted earnings per share rising 70% versus the prior year.
The company has reduced its reliance on higher-cost supplemental funding, cutting such liabilities by roughly $13 billion in recent quarters to enhance balance sheet flexibility.
Schwab continues to return significant capital to shareholders, repurchasing nearly $2.7 billion of its own shares in recent quarters while maintaining robust profitability margins above 49%.

Considerations

Schwab’s share price may face near-term pressure from the large secondary offering by a major shareholder, which could increase float and dilute existing investors.
Regulatory scrutiny of the US brokerage and banking sector remains elevated, posing potential headwinds for compliance costs and business initiatives.
Despite recent growth, Schwab remains exposed to cyclical swings in capital markets activity, which can drive volatility in trading, advisory, and asset management revenues.

TD

Pros

TD Bank is actively reallocating capital toward higher-return businesses, using proceeds from the $14.4 billion Schwab stake sale to repurchase its own shares and reinvest in core operations.
The bank maintains a leading position in North American retail banking, with over 27.9 million customers, $2.06 trillion in assets, and a strong digital franchise across Canada and the US.
TD’s diversified business model spans personal and commercial banking, wealth management, and wholesale banking, helping to cushion against downturns in any single segment.

Considerations

TD’s exit from its Schwab investment removes a lucrative non-core holding and potential future upside, reducing earnings diversification outside traditional banking.
The bank faces heightened regulatory and reputational risks following its recent money-laundering settlement, which may impact growth and investor sentiment.
TD’s US retail banking operations, while substantial, remain smaller than major domestic peers and could be challenged by intense competition and margin pressure.

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