Prospect Capital Corporation (PSEC)vsRoyal Bank of Canada (RY)
PSEC
Prospect Capital Corporation
$2.15
-0.46%
FINANCIAL SERVICES · Cap: $1.08B
RY
Royal Bank of Canada
$210.09
+1.76%
FINANCIAL SERVICES · Cap: $299.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 10000% more annual revenue ($65.72B vs $650.64M). RY leads profitability with a 33.7% profit margin vs -5.8%. PSEC appears more attractively valued with a PEG of 1.55. RY earns a higher WallStSmart Score of 67/100 (B-).
PSEC
Hold45
out of 100
Grade: D+
RY
Strong Buy67
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 73.3%
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 20.8B in free cash flow
16.1% revenue growth
Earnings expanding 27.5% YoY
Areas to Watch
Expensive relative to growth rate
Smaller company, higher risk/reward
Weak financial health signals
ROE of -0.8% — below average capital efficiency
Expensive relative to growth rate
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.
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 : PSEC
The primary concerns for PSEC are PEG Ratio, Market Cap, Piotroski F-Score.
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
PSEC profiles as a turnaround stock while RY is a growth play — different risk/reward profiles.
RY carries more volatility with a beta of 0.93 — 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 45/100), 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.
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.
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