WallStSmart

PennantPark Floating Rate Capital Ltd (PFLT)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 23878% more annual revenue ($63.42B vs $264.51M). RY leads profitability with a 33.1% profit margin vs 13.0%. PFLT appears more attractively valued with a PEG of 0.26. RY earns a higher WallStSmart Score of 68/100 (B-).

PFLT

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.0Quality: 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

PFLT3 strengths · Avg: 10.0/10
PEG RatioValuation
0.2610/10

Growing faster than its price suggests

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
77.8%10/10

Strong operational efficiency at 77.8%

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

PFLT4 concerns · Avg: 3.5/10
P/E RatioValuation
27.7x4/10

Moderate valuation

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Market CapQuality
$907.84M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.4%3/10

ROE of 3.4% — below average capital efficiency

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

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PFLT

The strongest argument for PFLT centers on PEG Ratio, Price/Book, Operating Margin. PEG of 0.26 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 33.1% and operating margin at 46.2%.

Bear Case : PFLT

The primary concerns for PFLT are P/E Ratio, Revenue Growth, Market Cap.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

PFLT profiles as a value 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 56/100), backed by strong 33.1% 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.

PennantPark Floating Rate Capital Ltd

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

PennantPark Floating Rate Capital Ltd (PFLT) is a prominent business development company that specializes in offering flexible financing solutions, predominantly through floating rate loans to middle-market enterprises. With a strong emphasis on capital preservation and generating consistent income, PFLT seeks to deliver compelling risk-adjusted returns by maintaining a diversified portfolio of debt instruments. Backed by an experienced management team and strategic partnerships, the company is well-positioned to adapt to evolving market dynamics while capitalizing on growth opportunities within the middle-market lending sector.

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.

Want to dig deeper into these stocks?