WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 50291% more annual revenue ($67.15B vs $133.26M). RY leads profitability with a 33.9% profit margin vs 5.8%. RWAY appears more attractively valued with a PEG of 1.16. RY earns a higher WallStSmart Score of 66/100 (B-).

RWAY

Strong Buy

65

out of 100

Grade: B-

Growth: 8.7Profit: 5.5Value: 5.7Quality: 4.8
Piotroski: 4/9

RY

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RWAY3 strengths · Avg: 9.3/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Operating MarginProfitability
84.2%10/10

Strong operational efficiency at 84.2%

EPS GrowthGrowth
42.8%8/10

Earnings expanding 42.8% YoY

RY5 strengths · Avg: 9.2/10
Market CapQuality
$281.45B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.4%10/10

Strong operational efficiency at 46.4%

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

RWAY4 concerns · Avg: 3.3/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Market CapQuality
$280.38M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
5.8%3/10

5.8% margin — thin

Debt/EquityHealth
1.383/10

Elevated debt levels

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.264/10

Expensive relative to growth rate

Free Cash FlowQuality
$-28.67B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.881/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : RWAY

The strongest argument for RWAY centers on Price/Book, Operating Margin, EPS Growth. 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 33.9% and operating margin at 46.4%.

Bear Case : RWAY

The primary concerns for RWAY are P/E Ratio, Market Cap, Profit Margin.

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

RWAY profiles as a value 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 8.9% — sustainability is the question.

RWAY generates stronger free cash flow (-192M), providing more financial flexibility.

Bottom Line

RY scores higher overall (66/100 vs 65/100), backed by strong 33.9% margins. 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.

Runway Growth Finance Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Runway Growth Finance Corp (RWAY) is a prominent business development company dedicated to delivering growth capital to venture-backed private firms, primarily within the technology and life sciences sectors. By providing tailored financing solutions, RWAY acts as a strategic partner for high-growth enterprises seeking to scale effectively. Supported by a seasoned management team with extensive industry expertise, the company adeptly navigates the complexities of dynamic startups. For institutional investors, RWAY presents an attractive opportunity to tap into the immense potential of innovative industries through its disciplined investment strategy.

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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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