Prospect Capital Corporation (PSEC)vsRoyal Bank of Canada (RY)
PSEC
Prospect Capital Corporation
$2.23
-2.19%
FINANCIAL SERVICES · Cap: $1.16B
RY
Royal Bank of Canada
$194.04
-0.48%
FINANCIAL SERVICES · Cap: $277.29B
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 70/100 (B-).
PSEC
Hold45
out of 100
Grade: D+
RY
Strong Buy70
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 37.3B in free cash flow
Reasonable price relative to book value
16.1% revenue growth
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
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.
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 0.94 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (70/100 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 leading publicly traded business development company dedicated to providing tailored financing solutions to middle-market enterprises. With a diverse portfolio that includes both debt and equity investments, PSEC strategically focuses on growth-oriented businesses across multiple sectors. The firm aims to generate attractive, risk-adjusted returns for its shareholders while prioritizing sustainable investment practices and social responsibility, making it an essential partner in enhancing the growth of its portfolio companies and appealing to 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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