WallStSmart

MidCap Financial Investment Corporation (MFIC)vsRoyal Bank of Canada (RY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 22211% more annual revenue ($67.15B vs $300.98M). RY leads profitability with a 33.9% profit margin vs -9.8%. RY appears more attractively valued with a PEG of 2.26. RY earns a higher WallStSmart Score of 66/100 (B-).

MFIC

Hold

40

out of 100

Grade: D

Growth: 4.7Profit: 5.0Value: 4.0Quality: 3.8
Piotroski: 3/9

RY

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MFIC2 strengths · Avg: 10.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
87.7%10/10

Strong operational efficiency at 87.7%

RY5 strengths · Avg: 9.2/10
Market CapQuality
$281.45B10/10

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%

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

MFIC4 concerns · Avg: 2.8/10
Market CapQuality
$746.30M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.583/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.122/10

Expensive relative to growth rate

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.264/10

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 : MFIC

The strongest argument for MFIC centers on Price/Book, Operating Margin.

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 : MFIC

The primary concerns for MFIC are Market Cap, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.58 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

MFIC profiles as a turnaround 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 8.9% — sustainability is the question.

MFIC generates stronger free cash flow (189M), providing more financial flexibility.

Bottom Line

RY scores higher overall (66/100 vs 40/100), backed by strong 33.9% 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.

MidCap Financial Investment Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

MidCap Financial Investment Corporation (MFIC) is a premier specialty finance firm that specializes in delivering tailored financing solutions to middle-market companies across diverse sectors. With a commitment to innovative investment strategies, MFIC seeks to optimize portfolio returns while maintaining a strong emphasis on rigorous risk management and capital preservation. Led by an experienced management team with profound industry knowledge, the company adeptly identifies lucrative investment opportunities, positioning itself as a reliable partner for businesses in need of growth capital. MFIC's focus on operational excellence enables it to adeptly navigate the complexities of a dynamic market environment, further enhancing its appeal to institutional investors.

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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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