WallStSmart

Prudential Financial, Inc. (PRU)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 3% more annual revenue ($67.15B vs $65.22B). RY leads profitability with a 33.9% profit margin vs 6.0%. PRU appears more attractively valued with a PEG of 0.71. PRU earns a higher WallStSmart Score of 72/100 (B).

PRU

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 5.0Value: 7.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.05

RY

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PRU5 strengths · Avg: 9.2/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
89.2%10/10

Earnings expanding 89.2% YoY

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Free Cash FlowQuality
$2.35B8/10

Generating 2.3B in free cash flow

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

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%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

PRU2 concerns · Avg: 2.5/10
Profit MarginProfitability
6.0%3/10

6.0% margin — thin

Altman Z-ScoreHealth
0.052/10

Distress zone — elevated risk

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

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 : PRU

The strongest argument for PRU centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 14.1% demonstrates continued momentum. PEG of 0.71 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 : PRU

The primary concerns for PRU are Profit Margin, Altman Z-Score.

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

PRU 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.

PRU is growing revenue faster at 14.1% — sustainability is the question.

PRU generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

PRU scores higher overall (72/100 vs 63/100) and 14.1% revenue growth. 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.

Prudential Financial, Inc.

FINANCIAL SERVICES · INSURANCE - LIFE · USA

Prudential Financial, Inc. is an American company whose subsidiaries provide insurance, investment management, and other financial products and services to both retail and institutional customers throughout the United States and in over 40 other countries.

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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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