Reviewing TD Ameritrade (AMTD) & Its Rivals

TD Ameritrade (NASDAQ: AMTD) is one of 31 public companies in the “Security brokers & dealers” industry, but how does it contrast to its competitors? We will compare TD Ameritrade to related businesses based on the strength of its profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

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This table compares TD Ameritrade and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TD Ameritrade $3.68 billion $872.00 million 32.36
TD Ameritrade Competitors $5.87 billion $745.79 million 23.83

TD Ameritrade’s competitors have higher revenue, but lower earnings than TD Ameritrade. TD Ameritrade is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

TD Ameritrade has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, TD Ameritrade’s competitors have a beta of 8.84, indicating that their average share price is 784% more volatile than the S&P 500.

Institutional & Insider Ownership

92.0% of TD Ameritrade shares are held by institutional investors. Comparatively, 63.6% of shares of all “Security brokers & dealers” companies are held by institutional investors. 0.4% of TD Ameritrade shares are held by insiders. Comparatively, 21.8% of shares of all “Security brokers & dealers” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.


This table compares TD Ameritrade and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TD Ameritrade 23.39% 18.27% 3.39%
TD Ameritrade Competitors 5.53% 3.64% 5.12%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TD Ameritrade and its competitors, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TD Ameritrade 1 4 11 0 2.63
TD Ameritrade Competitors 322 1375 1441 67 2.39

TD Ameritrade currently has a consensus price target of $61.81, indicating a potential upside of 3.80%. As a group, “Security brokers & dealers” companies have a potential upside of 1.05%. Given TD Ameritrade’s stronger consensus rating and higher probable upside, equities analysts clearly believe TD Ameritrade is more favorable than its competitors.


TD Ameritrade pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. TD Ameritrade pays out 45.7% of its earnings in the form of a dividend. As a group, “Security brokers & dealers” companies pay a dividend yield of 1.6% and pay out 35.0% of their earnings in the form of a dividend. TD Ameritrade lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.


TD Ameritrade beats its competitors on 8 of the 15 factors compared.

TD Ameritrade Company Profile

TD Ameritrade Holding Corporation provides securities brokerage and related technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. Its products and services include, a Web platform for self-directed retail investors; Trade Architect, a Web-based platform for investors and traders to identify opportunities and stay informed; thinkorswim, a desktop platform for traders; and TD Ameritrade Mobile, which allows on-the-go investors and traders to trade and monitor accounts. The company also offers TD Ameritrade Institutional that provides brokerage and custody services to approximately 6,000 independent RIAs and their clients; TD Ameritrade Education, which allows investor education for stocks, options, income investing, and portfolio management; TD Ameritrade's Goal Planning that offers investment consulting and planning services; Selective Portfolios, an advisory service, which develops portfolios of exchange-traded funds (ETFs) and mutual funds; AdvisorDirect, a national referral service for investors; TD Ameritrade Singapore Pte. Ltd. that enables retail investors in Singapore to trade the U.S. markets; and TD Ameritrade Corporate Services, which provide self-directed brokerage services to employees of corporations. In addition, it offers various retail brokerage products and services, such as common and preferred stocks; ETFs; options; futures; foreign exchange; mutual funds; fixed income products; primary and secondary offerings of fixed income securities, closed-end funds, and preferred stocks; margin lending; cash management services; and annuities. The company provides its services primarily through the Internet, a network of retail branches, mobile trading applications, interactive voice response, and registered representatives through telephone. TD Ameritrade Holding Corporation was founded in 1971 and is headquartered in Omaha, Nebraska.

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