WallStSmart

Royal Bank of Canada (RY)vsSouth Plains Financial Inc (SPFI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 29902% more annual revenue ($67.15B vs $223.82M). RY leads profitability with a 33.9% profit margin vs 29.1%. SPFI trades at a lower P/E of 12.4x. SPFI earns a higher WallStSmart Score of 65/100 (C+).

RY

Buy

63

out of 100

Grade: C+

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

SPFI

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 6.0Quality: 5.0
Piotroski: 5/9Altman Z: -0.40

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

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%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

SPFI6 strengths · Avg: 9.2/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
37.9%10/10

Strong operational efficiency at 37.9%

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Profit MarginProfitability
29.1%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Areas to Watch

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

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

SPFI2 concerns · Avg: 2.5/10
Market CapQuality
$859.63M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-0.402/10

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 33.9% and operating margin at 46.4%.

Bull Case : SPFI

The strongest argument for SPFI centers on Price/Book, Operating Margin, Debt/Equity. Profitability is solid with margins at 29.1% and operating margin at 37.9%. Revenue growth of 23.0% 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 : SPFI

The primary concerns for SPFI are Market Cap, Altman Z-Score.

Key Dynamics to Monitor

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

RY carries more volatility with a beta of 0.92 — expect wider price swings.

SPFI is growing revenue faster at 23.0% — sustainability is the question.

SPFI generates stronger free cash flow (27M), providing more financial flexibility.

Bottom Line

SPFI scores higher overall (65/100 vs 63/100), backed by strong 29.1% margins and 23.0% revenue growth. Both earn "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.

South Plains Financial Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

South Plains Financial, Inc. is a bank holding company for City Bank providing commercial and consumer financial services to small and medium-sized businesses and individuals. The company is headquartered in Lubbock, Texas.

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