WallStSmart

Nu Holdings Ltd (NU)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 765% more annual revenue ($65.72B vs $7.59B). NU leads profitability with a 41.9% profit margin vs 33.7%. NU appears more attractively valued with a PEG of 0.86. NU earns a higher WallStSmart Score of 79/100 (B+).

NU

Strong Buy

79

out of 100

Grade: B+

Growth: 10.0Profit: 9.0Value: 6.3Quality: 4.5
Piotroski: 2/9Altman Z: 0.22

RY

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NU6 strengths · Avg: 9.7/10
Profit MarginProfitability
41.9%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
48.2%10/10

Strong operational efficiency at 48.2%

Revenue GrowthGrowth
43.7%10/10

Revenue surging 43.7% year-over-year

EPS GrowthGrowth
55.9%10/10

Earnings expanding 55.9% YoY

Market CapQuality
$70.91B9/10

Large-cap with strong market position

Return on EquityProfitability
25.3%9/10

Every $100 of equity generates 25 in profit

RY6 strengths · Avg: 9.3/10
Market CapQuality
$299.37B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Free Cash FlowQuality
$20.82B10/10

Generating 20.8B in free cash flow

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

EPS GrowthGrowth
27.5%8/10

Earnings expanding 27.5% YoY

Areas to Watch

NU3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-1.29B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.222/10

Distress zone — elevated risk

RY3 concerns · Avg: 2.3/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.771/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : NU

The strongest argument for NU centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 41.9% and operating margin at 48.2%. Revenue growth of 43.7% 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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.

Bear Case : NU

The primary concerns for NU are Piotroski F-Score, Free Cash Flow, 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

NU carries more volatility with a beta of 0.95 — expect wider price swings.

NU is growing revenue faster at 43.7% — sustainability is the question.

RY generates stronger free cash flow (20.8B), providing more financial flexibility.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NU scores higher overall (79/100 vs 67/100), backed by strong 41.9% margins and 43.7% 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.

Nu Holdings Ltd

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Nu Holdings Ltd. operates in the technology industry. The company is headquartered in Grand Cayman, Cayman Islands.

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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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