First American Corporation (FAF)vsRoyal Bank of Canada (RY)
FAF
First American Corporation
$63.55
-1.30%
FINANCIAL SERVICES · Cap: $6.49B
RY
Royal Bank of Canada
$204.77
+0.86%
FINANCIAL SERVICES · Cap: $281.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 730% more annual revenue ($67.15B vs $8.09B). RY leads profitability with a 33.9% profit margin vs 9.1%. RY appears more attractively valued with a PEG of 1.89. RY earns a higher WallStSmart Score of 68/100 (B-).
FAF
Buy56
out of 100
Grade: C
RY
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Earnings declined 6.5%
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio, EPS Growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Key Dynamics to Monitor
FAF profiles as a value stock while RY is a mature play — different risk/reward profiles.
FAF carries more volatility with a beta of 1.26 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
FAF generates stronger free cash flow (197M), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 56/100), backed by strong 33.9% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
First American Corporation
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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