WallStSmart

Kestrel Group, Ltd. (KG)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 150625% more annual revenue ($67.15B vs $44.55M). RY leads profitability with a 33.9% profit margin vs -86.0%. RY earns a higher WallStSmart Score of 63/100 (C+).

KG

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 5.0Quality: 5.0
Piotroski: 4/9

RY

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KG3 strengths · Avg: 9.3/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Return on EquityProfitability
32.7%10/10

Every $100 of equity generates 33 in profit

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.4%10/10

Strong operational efficiency at 46.4%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

KG4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$59.31M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.553/10

Elevated debt levels

Free Cash FlowQuality
$-37.63M2/10

Negative free cash flow — burning cash

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

Expensive relative to growth rate

Free Cash FlowQuality
$-28.67B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.881/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : KG

The strongest argument for KG centers on Price/Book, Return on Equity, Revenue Growth. Revenue growth of 20.1% demonstrates continued momentum.

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 : KG

The primary concerns for KG are EPS Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.55 is elevated, increasing financial risk.

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

KG profiles as a growth stock while RY is a mature play — different risk/reward profiles.

KG is growing revenue faster at 20.1% — sustainability is the question.

KG generates stronger free cash flow (-38M), providing more financial flexibility.

Monitor INSURANCE - REINSURANCE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RY scores higher overall (63/100 vs 42/100), backed by strong 33.9% margins. Both earn "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.

Kestrel Group, Ltd.

FINANCIAL SERVICES · INSURANCE - REINSURANCE · USA

Kestrel Group Ltd engages in providing fronting services to insurance program managers, MGAs, reinsurers, and reinsurance brokers. The company is headquartered in Hamilton, Bermuda.

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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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