WallStSmart

Royal Bank of Canada (RY)vsSprott Inc. (SII)

VS

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 Buy

66

out of 100

Grade: B-

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

SII

Buy

64

out of 100

Grade: C+

Growth: 9.3Profit: 9.5Value: 4.7Quality: 7.3
Piotroski: 4/9Altman Z: 2.56

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

SII5 strengths · Avg: 9.2/10
Operating MarginProfitability
56.8%10/10

Strong operational efficiency at 56.8%

EPS GrowthGrowth
155.7%10/10

Earnings expanding 155.7% YoY

Return on EquityProfitability
22.9%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
26.4%9/10

Keeps 26 of every $100 in revenue as profit

Revenue GrowthGrowth
23.1%8/10

Revenue surging 23.1% year-over-year

Areas to Watch

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

SII2 concerns · Avg: 4.0/10
P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.6x4/10

Trading at 8.6x book value

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 : 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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