WallStSmart

Royal Bank of Canada (RY)vsSouthside Bancshares, Inc. (SBSI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 27307% more annual revenue ($67.15B vs $245.01M). RY leads profitability with a 33.9% profit margin vs 31.0%. RY appears more attractively valued with a PEG of 2.35. SBSI earns a higher WallStSmart Score of 64/100 (C+).

RY

Buy

63

out of 100

Grade: C+

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

SBSI

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 5.0Quality: 3.5
Piotroski: 5/9Altman Z: -0.58

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

SBSI5 strengths · Avg: 9.2/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
31.0%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
47.2%10/10

Strong operational efficiency at 47.2%

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
25.0%8/10

Earnings expanding 25.0% YoY

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

SBSI4 concerns · Avg: 2.5/10
Market CapQuality
$978.60M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.863/10

Elevated debt levels

PEG RatioValuation
5.352/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.582/10

Distress zone — elevated risk

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 : SBSI

The strongest argument for SBSI centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 31.0% and operating margin at 47.2%.

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 : SBSI

The primary concerns for SBSI are Market Cap, Debt/Equity, PEG Ratio. Debt-to-equity of 1.86 is elevated, increasing financial risk.

Key Dynamics to Monitor

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.

SBSI generates stronger free cash flow (28M), providing more financial flexibility.

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

Bottom Line

SBSI scores higher overall (64/100 vs 63/100), backed by strong 31.0% margins. Both earn "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.

Southside Bancshares, Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Southside Bancshares, Inc. is the banking holding company for Southside Bank providing a range of financial services to individuals, businesses, municipal entities, and non-profit organizations. The company is headquartered in Tyler, Texas.

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