WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 167119% more annual revenue ($65.72B vs $39.30M). RY leads profitability with a 33.7% profit margin vs -95.2%. OFS appears more attractively valued with a PEG of 1.83. RY earns a higher WallStSmart Score of 67/100 (B-).

OFS

Hold

42

out of 100

Grade: D

Growth: 3.0Profit: 5.0Value: 4.7Quality: 3.8
Piotroski: 3/9Altman Z: -0.38

RY

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 4.3Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

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
68.9%10/10

Strong operational efficiency at 68.9%

RY6 strengths · Avg: 9.3/10
Market CapQuality
$282.00B10/10

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

OFS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

Market CapQuality
$45.42M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.833/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

RY3 concerns · Avg: 1.7/10
PEG RatioValuation
2.532/10

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 : 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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.

Bear Case : OFS

The primary concerns for OFS are PEG Ratio, Market Cap, Debt/Equity. Debt-to-equity of 1.83 is elevated, increasing financial risk.

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

OFS profiles as a turnaround stock while RY is a growth play — different risk/reward profiles.

RY carries more volatility with a beta of 0.94 — expect wider price swings.

RY is growing revenue faster at 16.1% — sustainability is the question.

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

Bottom Line

RY scores higher overall (67/100 vs 42/100), backed by strong 33.7% margins and 16.1% revenue growth. 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 focused on providing customized capital solutions to middle-market enterprises across the United States. The firm primarily invests in private debt instruments, including senior secured and subordinated debt, while also pursuing selective equity investments to optimize overall returns. Backed by a seasoned management team and a disciplined investment approach, OFS aims to deliver robust risk-adjusted returns for its shareholders. With a strong network of industry connections and acute market insights, the company is adept at recognizing and capitalizing on investment opportunities amidst shifting economic conditions.

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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