Prospect Capital Corporation (PSEC)vsRoyal Bank of Canada (RY)
PSEC
Prospect Capital Corporation
$2.71
+0.74%
FINANCIAL SERVICES · Cap: $1.31B
RY
Royal Bank of Canada
$179.54
-0.24%
FINANCIAL SERVICES · Cap: $250.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 9348% more annual revenue ($63.42B vs $671.29M). RY leads profitability with a 33.1% profit margin vs -34.9%. PSEC appears more attractively valued with a PEG of 1.55. RY earns a higher WallStSmart Score of 68/100 (B-).
PSEC
Hold45
out of 100
Grade: D+
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%
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
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -4.8% — below average capital efficiency
Revenue declined 5.1%
Expensive relative to growth rate
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 33.1% and operating margin at 46.2%.
Bear Case : PSEC
The primary concerns for PSEC are PEG Ratio, Market Cap, Return on Equity.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
PSEC profiles as a turnaround 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 45/100), backed by strong 33.1% margins. 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 focused on delivering flexible financing solutions to middle-market enterprises. The firm maintains a diversified portfolio comprising both debt and equity investments, strategically targeting growth-oriented businesses across a variety of sectors. With a commitment to generating attractive, risk-adjusted returns for shareholders, PSEC emphasizes sustainable investment practices and social responsibility, positioning itself as a crucial partner in fostering the growth of its portfolio companies while aligning with the interests of socially-conscious investors.
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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