Nelnet Inc (NNI)vsRoyal Bank of Canada (RY)
NNI
Nelnet Inc
$126.69
+0.72%
FINANCIAL SERVICES · Cap: $4.49B
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 4411% more annual revenue ($67.15B vs $1.49B). RY leads profitability with a 33.9% profit margin vs 20.3%. NNI appears more attractively valued with a PEG of 0.46. RY earns a higher WallStSmart Score of 63/100 (C+).
NNI
Buy56
out of 100
Grade: C
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Areas to Watch
Elevated debt levels
Revenue declined 30.5%
Earnings declined 62.8%
Distress zone — elevated risk
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : NNI
The strongest argument for NNI centers on PEG Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 20.3% and operating margin at 18.2%. PEG of 0.46 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 33.9% and operating margin at 46.4%.
Bear Case : NNI
The primary concerns for NNI are Debt/Equity, Revenue Growth, EPS Growth. Debt-to-equity of 1.87 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
NNI profiles as a declining 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.
NNI generates stronger free cash flow (72M), providing more financial flexibility.
Bottom Line
RY scores higher overall (63/100 vs 56/100), backed by strong 33.9% margins. Both earn "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.
Nelnet Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Nelnet, Inc. is engaged in the loan management, communications and educational technology, services and payment processing businesses globally. The company is headquartered in Lincoln, Nebraska.
Visit Website →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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