WallStSmart

Royal Bank of Canada (RY)vsSLM Corp (SLM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 3708% more annual revenue ($63.42B vs $1.67B). SLM leads profitability with a 44.9% profit margin vs 33.1%. SLM appears more attractively valued with a PEG of 0.58. SLM earns a higher WallStSmart Score of 76/100 (B+).

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

SLM

Strong Buy

76

out of 100

Grade: B+

Growth: 5.3Profit: 8.5Value: 7.7Quality: 5.5
Piotroski: 7/9Altman Z: 0.63

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$250.25B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

SLM6 strengths · Avg: 9.3/10
P/E RatioValuation
6.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.9%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
44.9%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
70.1%10/10

Strong operational efficiency at 70.1%

PEG RatioValuation
0.588/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

SLM4 concerns · Avg: 2.3/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

Free Cash FlowQuality
$-75.96M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.632/10

Distress zone — elevated risk

Debt/EquityHealth
2.391/10

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 33.1% and operating margin at 46.2%.

Bull Case : SLM

The strongest argument for SLM centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 44.9% and operating margin at 70.1%. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : SLM

The primary concerns for SLM are Revenue Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

RY profiles as a mature stock while SLM is a value play — different risk/reward profiles.

SLM carries more volatility with a beta of 1.05 — expect wider price swings.

RY is growing revenue faster at 7.5% — sustainability is the question.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

Bottom Line

SLM scores higher overall (76/100 vs 68/100), backed by strong 44.9% margins. 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.

SLM Corp

FINANCIAL SERVICES · CREDIT SERVICES · USA

SLM Corporation originates and provides private education loan services to students and their families to finance the cost of their education in the United States. The company is headquartered in Newark, Delaware.

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