Q: Which one of Td or Bns do you think willl provide the best return over the next 3 to 5 years?
5i Research Answer:
We think both can probably provide very similar returns from their current levels. We believe investors can own both for the benefit of diversification while potentially enjoying similar returns going forward. That being said, if we HAVE TO pick between the two we think BNS has better upside potential due to the potential for multiple expansion (lowest Price/Book among the big 6 banks), along with solid momentum from improving operating results and a slight shift in strategy.