WallStSmart

Royal Bank of Canada (RY)vsSLM Corp Pb Pref (SLMBP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 3708% more annual revenue ($63.42B vs $1.67B). SLMBP leads profitability with a 44.9% profit margin vs 33.1%. RY trades at a lower P/E of 16.9x. RY earns a higher WallStSmart Score of 68/100 (B-).

RY

Strong Buy

68

out of 100

Grade: B-

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

SLMBP

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 4.7Quality: 5.5
Piotroski: 6/9Altman 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

SLMBP3 strengths · Avg: 10.0/10
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%

Areas to Watch

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

Expensive relative to growth rate

SLMBP4 concerns · Avg: 3.0/10
P/E RatioValuation
34.7x4/10

Premium valuation, high expectations priced in

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

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 : SLMBP

The strongest argument for SLMBP centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 44.9% and operating margin at 70.1%.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : SLMBP

The primary concerns for SLMBP are P/E Ratio, Revenue Growth, Free Cash Flow. Debt-to-equity of 2.39 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

SLMBP 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

RY scores higher overall (68/100 vs 56/100), backed by strong 33.1% 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.

SLM Corp Pb Pref

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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