Suppose you’re thinking about investing in Canadian bank stocks. In that case, it can be difficult if you’re choosing between shares of Royal Bank of Canada (the symbol is RY on the TSX and NYSE) and Toronto-Dominion Bank (the symbol is TD on the TSX and NYSE). Bank stocks have performed well for years, so you might be thinking about adding them to your portfolio.
However, it would help if you looked at several aspects before investing in specific bank stock (or any stock for that matter).
For example, you may want to analyze the price to book and price to earnings ratios. Or you might want to review their quarterly earnings to spot any trends and look at whether either bank reported large provisions for credit losses recently.