Royal Bank of Canada (RY)vsSprott Inc. (SII)
RY
Royal Bank of Canada
$203.83
-1.14%
FINANCIAL SERVICES · Cap: $281.45B
SII
Sprott Inc.
$131.56
+2.78%
FINANCIAL SERVICES · Cap: $3.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 16700% more annual revenue ($67.15B vs $399.72M). RY leads profitability with a 33.9% profit margin vs 26.4%. RY trades at a lower P/E of 17.9x. RY earns a higher WallStSmart Score of 66/100 (B-).
RY
Strong Buy66
out of 100
Grade: B-
SII
Buy64
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 56.8%
Earnings expanding 155.7% YoY
Every $100 of equity generates 23 in profit
Keeps 26 of every $100 in revenue as profit
Revenue surging 23.1% year-over-year
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 8.6x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : SII
The strongest argument for SII centers on Operating Margin, EPS Growth, Return on Equity. Profitability is solid with margins at 26.4% and operating margin at 56.8%. Revenue growth of 23.1% 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 : SII
The primary concerns for SII are P/E Ratio, Price/Book.
Key Dynamics to Monitor
RY profiles as a mature stock while SII is a growth play — different risk/reward profiles.
SII carries more volatility with a beta of 1.40 — expect wider price swings.
SII is growing revenue faster at 23.1% — sustainability is the question.
SII generates stronger free cash flow (35M), providing more financial flexibility.
Bottom Line
RY scores higher overall (66/100 vs 64/100), backed by strong 33.9% margins. 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.
Sprott Inc.
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Sprott Inc. is a publicly owned asset management portfolio company. The company is headquartered in Toronto, Canada.
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