Prospect Capital Corporation (PSEC)vsRoyal Bank of Canada (RY)
PSEC
Prospect Capital Corporation
$1.62
+6.58%
FINANCIAL SERVICES · Cap: $854.11M
RY
Royal Bank of Canada
$206.03
+0.62%
FINANCIAL SERVICES · Cap: $281.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 10401% more annual revenue ($67.15B vs $639.45M). RY leads profitability with a 33.9% profit margin vs 24.0%. PSEC appears more attractively valued with a PEG of 1.55. RY earns a higher WallStSmart Score of 68/100 (B-).
PSEC
Buy56
out of 100
Grade: C
RY
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 70.3%
Keeps 24 of every $100 in revenue as profit
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Smaller company, higher risk/reward
ROE of 3.4% — below average capital efficiency
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : PSEC
The strongest argument for PSEC centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 70.3%.
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 : PSEC
The primary concerns for PSEC are PEG Ratio, P/E Ratio, Market Cap.
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
PSEC profiles as a declining stock while RY is a mature play — different risk/reward profiles.
RY carries more volatility with a beta of 0.91 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
PSEC generates stronger free cash flow (-44M), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 56/100), backed by strong 33.9% 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.
Prospect Capital Corporation
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Prospect Capital Corporation (PSEC) is a prominent publicly traded business development company that specializes in offering customized financing solutions to middle-market enterprises. Boasting a diversified investment portfolio comprising both debt and equity, PSEC concentrates on growth-oriented firms across various sectors, ensuring a strategic approach to capital allocation. The company is committed to generating attractive, risk-adjusted returns for its shareholders while adhering to sustainable investment principles and enhancing social responsibility. PSEC's emphasis on fostering the growth of its portfolio companies positions it as a key partner for business advancement, appealing particularly to socially-conscious investors seeking impactful investment opportunities.
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.
Compare with Other ASSET MANAGEMENT Stocks
Want to dig deeper into these stocks?