WallStSmart

Royal Bank of Canada (RY)vsShinhan Financial Group Co Ltd (SHG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shinhan Financial Group Co Ltd generates 25098% more annual revenue ($16.56T vs $65.72B). RY leads profitability with a 33.7% profit margin vs 32.5%. RY appears more attractively valued with a PEG of 2.34. SHG earns a higher WallStSmart Score of 72/100 (B).

RY

Strong Buy

67

out of 100

Grade: B-

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

SHG

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 5.7Quality: 5.0
Piotroski: 6/9Altman Z: 0.12

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$291.15B10/10

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

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

EPS GrowthGrowth
27.5%8/10

Earnings expanding 27.5% YoY

SHG6 strengths · Avg: 9.7/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
32.5%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
53.0%10/10

Strong operational efficiency at 53.0%

Free Cash FlowQuality
$13.14T10/10

Generating 13.1T in free cash flow

EPS GrowthGrowth
22.1%8/10

Earnings expanding 22.1% YoY

Areas to Watch

RY3 concerns · Avg: 2.3/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.771/10

Elevated debt levels

SHG2 concerns · Avg: 2.0/10
PEG RatioValuation
5.102/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.122/10

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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.

Bull Case : SHG

The strongest argument for SHG centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 32.5% and operating margin at 53.0%. Revenue growth of 14.1% demonstrates continued momentum.

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.

Bear Case : SHG

The primary concerns for SHG are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

RY profiles as a growth stock while SHG is a mature play — different risk/reward profiles.

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

RY is growing revenue faster at 16.1% — sustainability is the question.

SHG generates stronger free cash flow (13.1T), providing more financial flexibility.

Bottom Line

SHG scores higher overall (72/100 vs 67/100), backed by strong 32.5% margins and 14.1% 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.

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.

Shinhan Financial Group Co Ltd

FINANCIAL SERVICES · BANKS - REGIONAL · China

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company is headquartered in Seoul, South Korea.

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