WallStSmart

Royal Bank of Canada (RY)vsBanco Santander SA ADR (SAN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 38% more annual revenue ($67.15B vs $48.53B). RY leads profitability with a 33.9% profit margin vs 33.5%. SAN appears more attractively valued with a PEG of 0.94. SAN earns a higher WallStSmart Score of 69/100 (B-).

RY

Buy

63

out of 100

Grade: C+

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

SAN

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 7.0Quality: 3.8
Piotroski: 4/9Altman Z: -0.41

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

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%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

SAN6 strengths · Avg: 9.0/10
Market CapQuality
$217.14B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
43.4%10/10

Strong operational efficiency at 43.4%

PEG RatioValuation
0.948/10

Growing faster than its price suggests

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

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

SAN2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
-0.412/10

Distress zone — elevated risk

Debt/EquityHealth
4.121/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : SAN

The strongest argument for SAN centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.5% and operating margin at 43.4%. Revenue growth of 10.2% demonstrates continued momentum.

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.

Bear Case : SAN

The primary concerns for SAN are Altman Z-Score, Debt/Equity. Debt-to-equity of 4.12 is elevated, increasing financial risk.

Key Dynamics to Monitor

SAN carries more volatility with a beta of 0.93 — expect wider price swings.

SAN is growing revenue faster at 10.2% — sustainability is the question.

Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SAN scores higher overall (69/100 vs 63/100), backed by strong 33.5% margins and 10.2% revenue growth. Both earn "Strong Buy" and "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.

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.

Banco Santander SA ADR

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Banco Santander, SA, offers various commercial and retail banking products and services to individuals, small and medium-sized companies and large companies worldwide. The company is headquartered in Madrid, Spain.

Want to dig deeper into these stocks?