WallStSmart

Runway Growth Finance Corp (RWAY)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 49920% more annual revenue ($65.72B vs $131.38M). RY leads profitability with a 33.7% profit margin vs -2.0%. RWAY appears more attractively valued with a PEG of 1.16. RY earns a higher WallStSmart Score of 70/100 (B-).

RWAY

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 5.3Quality: 4.3
Piotroski: 4/9

RY

Strong Buy

70

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 4.3Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RWAY2 strengths · Avg: 10.0/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
71.7%10/10

Strong operational efficiency at 71.7%

RY6 strengths · Avg: 9.3/10
Market CapQuality
$277.29B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Free Cash FlowQuality
$20.82B10/10

Generating 20.8B in free cash flow

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

Areas to Watch

RWAY4 concerns · Avg: 2.5/10
Market CapQuality
$256.27M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.013/10

Elevated debt levels

Return on EquityProfitability
-0.6%2/10

ROE of -0.6% — below average capital efficiency

Revenue GrowthGrowth
-16.8%2/10

Revenue declined 16.8%

RY3 concerns · Avg: 1.7/10
PEG RatioValuation
2.532/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.771/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : RWAY

The strongest argument for RWAY centers on Price/Book, Operating Margin. PEG of 1.16 suggests the stock is reasonably priced for its growth.

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 : RWAY

The primary concerns for RWAY are Market Cap, Debt/Equity, Return on Equity.

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

RWAY 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 (20.8B), providing more financial flexibility.

Bottom Line

RY scores higher overall (70/100 vs 49/100), 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.

Runway Growth Finance Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Runway Growth Finance Corp (RWAY) is a leading business development company specializing in providing growth capital to venture-backed private enterprises, predominantly in the technology and life sciences sectors. With a focus on tailoring financing solutions to support high-growth firms, RWAY serves as a strategic partner, enabling these companies to scale effectively. The firm benefits from a seasoned management team with deep industry expertise, allowing it to navigate the complexities of dynamic startups. For institutional investors, RWAY offers a compelling opportunity to capitalize on the burgeoning potential within innovative industries through a disciplined investment approach.

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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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