Mercury General Corporation (MCY)vsRoyal Bank of Canada (RY)
MCY
Mercury General Corporation
$108.37
-1.04%
FINANCIAL SERVICES · Cap: $5.89B
RY
Royal Bank of Canada
$210.09
+1.76%
FINANCIAL SERVICES · Cap: $299.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 971% more annual revenue ($65.72B vs $6.14B). RY leads profitability with a 33.7% profit margin vs 13.7%. MCY appears more attractively valued with a PEG of 1.12. MCY earns a higher WallStSmart Score of 76/100 (B+).
MCY
Strong Buy76
out of 100
Grade: B+
RY
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 32 in profit
Earnings expanding 100.9% YoY
Conservative balance sheet, low leverage
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 45.3%
Generating 20.8B in free cash flow
16.1% revenue growth
Earnings expanding 27.5% YoY
Areas to Watch
Weak financial health signals
Distress zone — elevated risk
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MCY
The strongest argument for MCY centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 10.5% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : MCY
The primary concerns for MCY are Piotroski F-Score, Altman Z-Score.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
MCY profiles as a value stock while RY is a growth play — different risk/reward profiles.
RY carries more volatility with a beta of 0.93 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Bottom Line
MCY scores higher overall (76/100 vs 67/100) and 10.5% revenue growth. Both earn "Strong Buy" and "Strong 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.
Mercury General Corporation
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
Mercury General Corporation engages in underwriting personal auto insurance in the United States. The company is headquartered in Los Angeles, 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.
Compare with Other INSURANCE - PROPERTY & CASUALTY Stocks
Want to dig deeper into these stocks?