WallStSmart

Royal Bank of Canada (RY)vsAT&T Inc. (T)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AT&T Inc. generates 99% more annual revenue ($126.53B vs $63.42B). RY leads profitability with a 33.1% profit margin vs 16.9%. T appears more attractively valued with a PEG of 1.81. 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

T

Buy

64

out of 100

Grade: C+

Growth: 3.3Profit: 7.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for RY.

TUndervalued (+21.5%)

Margin of Safety

+21.5%

Fair Value

$32.17

Current Price

$25.16

$7.01 discount

UndervaluedFair: $32.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$252.56B10/10

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
17.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

T5 strengths · Avg: 8.6/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

Market CapQuality
$175.52B9/10

Large-cap with strong market position

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.7%8/10

Strong operational efficiency at 22.7%

Free Cash FlowQuality
$2.68B8/10

Generating 2.7B in free cash flow

Areas to Watch

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

Expensive relative to growth rate

T3 concerns · Avg: 3.3/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

EPS GrowthGrowth
-11.3%2/10

Earnings declined 11.3%

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 : T

The strongest argument for T centers on P/E Ratio, Market Cap, Price/Book. Profitability is solid with margins at 16.9% and operating margin at 22.7%.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : T

The primary concerns for T are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

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

RY carries more volatility with a beta of 0.94 — 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 64/100), backed by strong 33.1% margins. T offers better value entry with a 21.5% margin of safety. 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.

AT&T Inc.

COMMUNICATION SERVICES · TELECOM SERVICES · USA

AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.

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