WallStSmart

OFS Capital Corp (OFS)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 155767% more annual revenue ($63.42B vs $40.69M). RY leads profitability with a 33.1% profit margin vs -81.3%. OFS appears more attractively valued with a PEG of 1.83. RY earns a higher WallStSmart Score of 68/100 (B-).

OFS

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 5.0Value: 4.7Quality: 5.0

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OFS2 strengths · Avg: 10.0/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
74.3%10/10

Strong operational efficiency at 74.3%

RY6 strengths · Avg: 9.3/10
Market CapQuality
$250.25B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

OFS4 concerns · Avg: 2.8/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

Market CapQuality
$54.26M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-22.4%2/10

ROE of -22.4% — below average capital efficiency

Revenue GrowthGrowth
-19.6%2/10

Revenue declined 19.6%

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : OFS

The strongest argument for OFS 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 33.1% and operating margin at 46.2%.

Bear Case : OFS

The primary concerns for OFS are PEG Ratio, Market Cap, Return on Equity.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

OFS 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 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 42/100), backed by strong 33.1% 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.

OFS Capital Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

OFS Capital Corp (OFS) is a publicly traded business development company that specializes in providing tailored capital solutions to middle-market enterprises in the U.S. With a robust investment portfolio primarily centered on private debt, including senior secured and subordinated debt, OFS also selectively engages in equity investments to enhance overall returns. The company is supported by an experienced management team and a rigorous investment strategy, aimed at delivering strong risk-adjusted returns to its shareholders. By leveraging its extensive industry relationships and market insights, OFS is well-positioned to identify and seize emerging investment opportunities amid evolving economic landscapes.

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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