RLI Corp (RLI)vsRoyal Bank of Canada (RY)
RLI
RLI Corp
$58.13
-1.59%
FINANCIAL SERVICES · Cap: $5.42B
RY
Royal Bank of Canada
$203.83
-1.14%
FINANCIAL SERVICES · Cap: $281.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 3301% more annual revenue ($67.15B vs $1.97B). RY leads profitability with a 33.9% profit margin vs 22.2%. RLI appears more attractively valued with a PEG of 1.73. RLI earns a higher WallStSmart Score of 77/100 (B+).
RLI
Strong Buy77
out of 100
Grade: B+
RY
Strong Buy66
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 36.9%
Every $100 of equity generates 22 in profit
Keeps 22 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
15.2% revenue growth
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
Distress zone — elevated risk
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : RLI
The strongest argument for RLI centers on Operating Margin, Return on Equity, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 36.9%. Revenue growth of 15.2% demonstrates continued momentum.
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 : RLI
The primary concerns for RLI are PEG Ratio, 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
RLI profiles as a growth 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.
RLI is growing revenue faster at 15.2% — sustainability is the question.
RLI generates stronger free cash flow (142M), providing more financial flexibility.
Bottom Line
RLI scores higher overall (77/100 vs 66/100), backed by strong 22.2% margins and 15.2% revenue growth. Both earn "Strong Buy" and "Strong 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.
RLI Corp
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
RLI Corp. The company is headquartered in Peoria, Illinois.
Visit Website →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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