BMO vs. TD
BMO (Bank of Montreal) and TD (The Toronto-Dominion Bank) are both stocks. Both operate in the Banks - Diversified industry within the Financial Services sector. Over the past 10 years, BMO returned 15.06%/yr vs 14.55%/yr for TD. A 0.74 correlation means they provide meaningful diversification when combined.
Performance
BMO vs. TD - Performance Comparison
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Returns By Period
In the year-to-date period, BMO achieves a 29.59% return, which is significantly higher than TD's 22.26% return. Both investments have delivered pretty close results over the past 10 years, with BMO having a 15.06% annualized return and TD not far behind at 14.55%.
BMO
- 1D
- 1.70%
- 1M
- 8.45%
- YTD
- 29.59%
- 6M
- 33.76%
- 1Y
- 59.06%
- 3Y*
- 29.84%
- 5Y*
- 14.35%
- 10Y*
- 15.06%
TD
- 1D
- 2.34%
- 1M
- 5.60%
- YTD
- 22.26%
- 6M
- 36.21%
- 1Y
- 69.51%
- 3Y*
- 30.45%
- 5Y*
- 14.26%
- 10Y*
- 14.55%
BMO vs. TD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BMO Bank of Montreal | 29.59% | 39.59% | 2.98% | 15.24% | -12.41% | 48.15% | 3.34% | 23.51% | -15.02% | 16.63% |
TD The Toronto-Dominion Bank | 22.26% | 85.32% | -13.40% | 5.04% | -12.19% | 41.25% | 5.58% | 17.45% | -12.10% | 22.85% |
Correlation
The correlation between BMO and TD is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.69 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.63 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.73 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.76 |
Correlation (All Time) Calculated using the full available price history since Sep 3, 1996 | 0.74 |
The correlation between BMO and TD shifts across timeframes, from 0.63 (3 years) to 0.76 (10 years), reflecting how their relationship changes across market environments.
Fundamentals
BMO:
$85.73B
TD:
$138.85B
BMO:
$14.56
TD:
$10.11
BMO:
11.36
TD:
11.21
BMO:
0.52
TD:
0.40
BMO:
1.43
TD:
1.48
BMO:
1.10
TD:
1.23
BMO:
$77.05B
TD:
$112.63B
BMO:
$34.51B
TD:
$59.49B
BMO:
$14.21B
TD:
$19.99B
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Return for Risk
BMO vs. TD — Risk / Return Rank
BMO
TD
BMO vs. TD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Bank of Montreal (BMO) and The Toronto-Dominion Bank (TD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| BMO | TD | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 3.16 | 4.24 | -1.08 |
Sortino ratioReturn per unit of downside risk | 4.11 | 5.32 | -1.21 |
Omega ratioGain probability vs. loss probability | 1.54 | 1.69 | -0.16 |
Calmar ratioReturn relative to maximum drawdown | 5.15 | 9.35 | -4.20 |
Martin ratioReturn relative to average drawdown | 19.15 | 36.58 | -17.43 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BMO | TD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.16 | 4.24 | -1.08 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.68 | 0.72 | -0.05 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.64 | 0.67 | -0.03 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.58 | 0.60 | -0.03 |
Drawdowns
BMO vs. TD - Drawdown Comparison
The maximum BMO drawdown since its inception was -68.17%, which is greater than TD's maximum drawdown of -64.18%. Use the drawdown chart below to compare losses from any high point for BMO and TD.
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Drawdown Indicators
| BMO | TD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -68.17% | -64.18% | -3.99% |
Max Drawdown (1Y)Largest decline over 1 year | -11.62% | -7.50% | -4.12% |
Max Drawdown (3Y)Largest decline over 3 years | -18.56% | -19.19% | +0.63% |
Max Drawdown (5Y)Largest decline over 5 years | -33.94% | -30.93% | -3.01% |
Max Drawdown (10Y)Largest decline over 10 years | -50.97% | -41.98% | -8.99% |
Current DrawdownCurrent decline from peak | 0.00% | -0.23% | +0.23% |
Average DrawdownAverage peak-to-trough decline | -11.43% | -11.24% | -0.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.12% | 1.92% | +1.20% |
Volatility
BMO vs. TD - Volatility Comparison
Bank of Montreal (BMO) and The Toronto-Dominion Bank (TD) have volatilities of 5.48% and 5.61%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BMO | TD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.48% | 5.61% | -0.13% |
Volatility (6M)Calculated over the trailing 6-month period | 15.60% | 12.96% | +2.64% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.80% | 16.50% | +2.30% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.31% | 19.81% | +1.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.66% | 21.72% | +1.94% |
Dividends
BMO vs. TD - Dividend Comparison
BMO's dividend yield for the trailing twelve months is around 2.91%, more than TD's 2.71% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BMO Bank of Montreal | 2.91% | 3.55% | 4.60% | 4.76% | 4.62% | 3.95% | 4.15% | 3.96% | 4.78% | 4.45% | 4.73% | 5.74% |
TD The Toronto-Dominion Bank | 2.71% | 3.17% | 5.65% | 4.80% | 4.24% | 3.27% | 4.10% | 3.89% | 4.08% | 3.03% | 3.58% | 5.11% |
Financials
BMO vs. TD - Financials Comparison
This section allows you to compare key financial metrics between Bank of Montreal and The Toronto-Dominion Bank. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
BMO vs. TD - Profitability Comparison
BMO - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Bank of Montreal reported a gross profit of 8.78B and revenue of 19.26B. Therefore, the gross margin over that period was 45.6%.
TD - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, The Toronto-Dominion Bank reported a gross profit of 14.90B and revenue of 27.02B. Therefore, the gross margin over that period was 55.2%.
BMO - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Bank of Montreal reported an operating income of 3.50B and revenue of 19.26B, resulting in an operating margin of 18.2%.
TD - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, The Toronto-Dominion Bank reported an operating income of 5.02B and revenue of 27.02B, resulting in an operating margin of 18.6%.
BMO - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Bank of Montreal reported a net income of 2.63B and revenue of 19.26B, resulting in a net margin of 13.6%.
TD - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, The Toronto-Dominion Bank reported a net income of 4.25B and revenue of 27.02B, resulting in a net margin of 15.7%.
Frequently Asked Questions
BMO and TD have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TD has higher volatility (5.61%) compared to BMO (5.48%). In terms of maximum drawdown, BMO dropped -68.17% vs TD's -64.18%.
TD currently has the higher Sharpe Ratio (4.24 vs 3.16), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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