WallStSmart

Ferrovial SE (FER)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 559% more annual revenue ($63.42B vs $9.63B). RY leads profitability with a 33.1% profit margin vs 9.2%. RY appears more attractively valued with a PEG of 2.30. RY earns a higher WallStSmart Score of 68/100 (B-).

FER

Hold

38

out of 100

Grade: F

Growth: 4.7Profit: 5.5Value: 3.7Quality: 5.0

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FER1 strengths · Avg: 8.0/10
Free Cash FlowQuality
$1.43B8/10

Generating 1.4B in free cash flow

RY6 strengths · Avg: 9.3/10
Market CapQuality
$250.25B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

FER3 concerns · Avg: 2.0/10
PEG RatioValuation
5.572/10

Expensive relative to growth rate

P/E RatioValuation
48.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-87.6%2/10

Earnings declined 87.6%

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : FER

The strongest argument for FER centers on Free Cash Flow.

Bull Case : RY

The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.

Bear Case : FER

The primary concerns for FER are PEG Ratio, P/E Ratio, EPS Growth. A P/E of 48.6x leaves little room for execution misses.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

FER profiles as a value stock while RY is a mature play — different risk/reward profiles.

RY carries more volatility with a beta of 0.92 — expect wider price swings.

RY is growing revenue faster at 7.5% — sustainability is the question.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

Bottom Line

RY scores higher overall (68/100 vs 38/100), backed by strong 33.1% margins. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ferrovial SE

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Ferrovial SE, engages in the development, construction, and operation of highways and airports in the United States, Poland, Spain, the United Kingdom, Canada, and internationally. The company is headquartered in Amsterdam, the Netherlands.

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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