Royal Bank of Canada (RY)vsSynchrony Financial (SYF)
RY
Royal Bank of Canada
$202.64
-0.44%
FINANCIAL SERVICES · Cap: $282.66B
SYF
Synchrony Financial
$71.65
-0.50%
FINANCIAL SERVICES · Cap: $23.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 586% more annual revenue ($67.15B vs $9.78B). SYF leads profitability with a 34.1% profit margin vs 33.9%. SYF appears more attractively valued with a PEG of 0.91. SYF earns a higher WallStSmart Score of 69/100 (B-).
RY
Strong Buy69
out of 100
Grade: B-
SYF
Strong Buy69
out of 100
Grade: B-
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%
Attractively priced relative to earnings
Reasonable price relative to book value
Attractively priced relative to earnings
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 49.8%
Every $100 of equity generates 20 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Elevated debt levels
Revenue declined 4.7%
Earnings declined 6.3%
Distress zone — elevated risk
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 : SYF
The strongest argument for SYF centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 34.1% and operating margin at 49.8%. PEG of 0.91 suggests the stock is reasonably priced for its growth.
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 : SYF
The primary concerns for SYF are Debt/Equity, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
RY profiles as a mature stock while SYF is a declining play — different risk/reward profiles.
SYF carries more volatility with a beta of 1.40 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
SYF generates stronger free cash flow (2.5B), providing more financial flexibility.
Bottom Line
RY scores higher overall (69/100 vs 69/100), backed by strong 33.9% 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.
Synchrony Financial
FINANCIAL SERVICES · CREDIT SERVICES · USA
Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products through Synchrony Bank, its wholly owned online bank subsidiary.
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