New Mountain Finance Corporation (NMFC)vsRoyal Bank of Canada (RY)
NMFC
New Mountain Finance Corporation
$8.53
+1.43%
FINANCIAL SERVICES · Cap: $794.35M
RY
Royal Bank of Canada
$179.54
-0.24%
FINANCIAL SERVICES · Cap: $250.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 19291% more annual revenue ($63.42B vs $327.08M). RY leads profitability with a 33.1% profit margin vs 5.0%. NMFC appears more attractively valued with a PEG of 1.34. RY earns a higher WallStSmart Score of 68/100 (B-).
NMFC
Buy51
out of 100
Grade: C-
RY
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 80.8%
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
ROE of 1.3% — below average capital efficiency
5.0% margin — thin
Revenue declined 15.1%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : NMFC
The strongest argument for NMFC centers on Price/Book, Operating Margin. PEG of 1.34 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 33.1% and operating margin at 46.2%.
Bear Case : NMFC
The primary concerns for NMFC are Market Cap, Return on Equity, Profit Margin.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
NMFC 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 51/100), backed by strong 33.1% 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.
New Mountain Finance Corporation
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
New Mountain Finance Corporation (NMFC) is a prominent business development company focused on delivering customized debt and equity financing solutions to middle-market enterprises across diverse sectors. Backed by New Mountain Capital, the firm employs a disciplined investment strategy that prioritizes capital preservation and sustainable income generation, aiming to provide compelling risk-adjusted returns. With a commitment to informed decision-making and continuous operational improvement, NMFC seeks to enhance shareholder value while fostering growth and resilience in its investment portfolio. Its experienced management team and strategic focus position NMFC as a key player in the marketplace, dedicated to navigating the complexities of the middle-market landscape.
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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