PennyMac Finl Svcs Inc (PFSI)vsRoyal Bank of Canada (RY)
PFSI
PennyMac Finl Svcs Inc
$89.18
-2.19%
FINANCIAL SERVICES · Cap: $4.63B
RY
Royal Bank of Canada
$179.97
+2.71%
FINANCIAL SERVICES · Cap: $250.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 1732% more annual revenue ($63.42B vs $3.46B). RY leads profitability with a 33.1% profit margin vs 14.5%. RY appears more attractively valued with a PEG of 2.30. RY earns a higher WallStSmart Score of 68/100 (B-).
PFSI
Buy62
out of 100
Grade: C+
RY
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 511.0% year-over-year
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
0.6% earnings growth
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : PFSI
The strongest argument for PFSI centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 511.0% 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 33.1% and operating margin at 46.2%.
Bear Case : PFSI
The primary concerns for PFSI are EPS Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 5.35 is elevated, increasing financial risk.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
PFSI profiles as a growth stock while RY is a mature play — different risk/reward profiles.
PFSI carries more volatility with a beta of 1.52 — expect wider price swings.
PFSI is growing revenue faster at 511.0% — 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 62/100), 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.
PennyMac Finl Svcs Inc
FINANCIAL SERVICES · MORTGAGE FINANCE · USA
PennyMac Financial Services, Inc. is engaged in investment management and mortgage banking activities in the United States. The company is headquartered in Westlake Village, California.
Visit Website →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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