WallStSmart

Natwest Group PLC (NWG)vsRoyal Bank of Canada (RY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 295% more annual revenue ($67.15B vs $16.99B). NWG leads profitability with a 36.9% profit margin vs 33.9%. NWG appears more attractively valued with a PEG of 1.25. RY earns a higher WallStSmart Score of 68/100 (B-).

NWG

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 7.0Quality: 5.5
Piotroski: 5/9Altman Z: -0.50

RY

Strong Buy

68

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

NWG5 strengths · Avg: 9.8/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
36.9%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
52.1%10/10

Strong operational efficiency at 52.1%

Market CapQuality
$61.12B9/10

Large-cap with strong market position

RY5 strengths · Avg: 9.2/10
Market CapQuality
$281.07B10/10

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
17.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

NWG4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Debt/EquityHealth
1.843/10

Elevated debt levels

EPS GrowthGrowth
-2.6%2/10

Earnings declined 2.6%

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
1.894/10

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 : NWG

The strongest argument for NWG centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 36.9% and operating margin at 52.1%. PEG of 1.25 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 : NWG

The primary concerns for NWG are Revenue Growth, Debt/Equity, EPS Growth. Debt-to-equity of 1.84 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

NWG profiles as a value stock while RY is a mature play — different risk/reward profiles.

RY carries more volatility with a beta of 0.91 — expect wider price swings.

RY is growing revenue faster at 8.9% — sustainability is the question.

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

Bottom Line

RY scores higher overall (68/100 vs 61/100), backed by strong 33.9% 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.

Natwest Group PLC

FINANCIAL SERVICES · BANKS - REGIONAL · USA

NatWest Group plc, provides banking and financial products and services to personal, commercial, corporate and institutional clients. The company is headquartered in Edinburgh, the United Kingdom.

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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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