WallStSmart

Royal Bank of Canada (RY)vsSociedad Quimica y Minera de Chile SA ADR B (SQM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 1286% more annual revenue ($63.42B vs $4.58B). RY leads profitability with a 33.1% profit margin vs 12.9%. SQM appears more attractively valued with a PEG of 0.46. RY earns a higher WallStSmart Score of 68/100 (B-).

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 10.0Quality: 5.0

SQM

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 9.3Quality: 7.3
Piotroski: 6/9Altman Z: 2.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RYUndervalued (+44.3%)

Margin of Safety

+44.3%

Fair Value

$306.13

Current Price

$162.50

$143.63 discount

UndervaluedFair: $306.13Overvalued
SQMUndervalued (+22.0%)

Margin of Safety

+22.0%

Fair Value

$96.41

Current Price

$79.16

$17.25 discount

UndervaluedFair: $96.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$225.89B10/10

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
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

SQM4 strengths · Avg: 9.0/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

EPS GrowthGrowth
52.3%10/10

Earnings expanding 52.3% YoY

Operating MarginProfitability
28.3%8/10

Strong operational efficiency at 28.3%

Revenue GrowthGrowth
23.3%8/10

Revenue surging 23.3% year-over-year

Areas to Watch

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

SQM1 concerns · Avg: 4.0/10
P/E RatioValuation
37.4x4/10

Premium valuation, high expectations priced in

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 : SQM

The strongest argument for SQM centers on PEG Ratio, EPS Growth, Operating Margin. Revenue growth of 23.3% demonstrates continued momentum. PEG of 0.46 suggests the stock is reasonably priced for its growth.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : SQM

The primary concerns for SQM are P/E Ratio.

Key Dynamics to Monitor

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

SQM carries more volatility with a beta of 1.04 — expect wider price swings.

SQM is growing revenue faster at 23.3% — 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 66/100), backed by strong 33.1% margins. SQM offers better value entry with a 22.0% margin of safety. 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.

Sociedad Quimica y Minera de Chile SA ADR B

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Sociedad Qumica y Minera de Chile SA produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals and other products and services worldwide. The company is headquartered in Santiago, Chile.

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