Royal Bank of Canada (RY)vsStepstone Group Inc (STEP)
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
STEP
Stepstone Group Inc
$48.92
-0.85%
FINANCIAL SERVICES · Cap: $6.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 3244% more annual revenue ($67.15B vs $2.01B). RY leads profitability with a 33.9% profit margin vs -30.5%. RY earns a higher WallStSmart Score of 63/100 (C+).
RY
Buy63
out of 100
Grade: C+
STEP
Avoid25
out of 100
Grade: F
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
4.0% revenue growth
ROE of -55.9% — below average capital efficiency
Earnings declined 38.5%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : STEP
The strongest argument for STEP centers on Debt/Equity.
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 : STEP
The primary concerns for STEP are Revenue Growth, Return on Equity, EPS Growth.
Key Dynamics to Monitor
RY profiles as a mature stock while STEP is a turnaround play — different risk/reward profiles.
STEP carries more volatility with a beta of 1.28 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
STEP generates stronger free cash flow (-458M), providing more financial flexibility.
Bottom Line
RY scores higher overall (63/100 vs 25/100), backed by strong 33.9% margins. Both earn "Buy" and "Avoid" 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.
Stepstone Group Inc
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Stepstone Group Inc. (STEP) is a leading global investment firm that specializes in private markets, delivering tailored investment solutions to institutional investors. The firm employs a strategic focus across various asset classes, including private equity, real estate, infrastructure, and private debt, leveraging its extensive network and deep sector expertise to uncover high-quality opportunities. With a commitment to disciplined asset allocation and rigorous due diligence, Stepstone combines the skills of a seasoned team with advanced technology, positioning itself to navigate the complexities of private markets and strive for sustainable, long-term value creation for clients.
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