WallStSmart

Royal Bank of Canada (RY)vsTexas Capital Bancshares Inc (TCBI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 4993% more annual revenue ($63.42B vs $1.25B). RY leads profitability with a 33.1% profit margin vs 28.7%. TCBI appears more attractively valued with a PEG of 1.47. TCBI earns a higher WallStSmart Score of 79/100 (B+).

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

TCBI

Strong Buy

79

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 6.3Quality: 4.3
Piotroski: 6/9Altman Z: -0.54

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$250.25B10/10

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
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

TCBI6 strengths · Avg: 9.2/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

EPS GrowthGrowth
69.6%10/10

Earnings expanding 69.6% YoY

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
16.9%8/10

16.9% revenue growth

Areas to Watch

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

Expensive relative to growth rate

TCBI1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
-0.542/10

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 33.1% and operating margin at 46.2%.

Bull Case : TCBI

The strongest argument for TCBI centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 28.7% and operating margin at 32.2%. Revenue growth of 16.9% demonstrates continued momentum.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : TCBI

The primary concerns for TCBI are Altman Z-Score.

Key Dynamics to Monitor

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

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

TCBI is growing revenue faster at 16.9% — sustainability is the question.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

Bottom Line

TCBI scores higher overall (79/100 vs 68/100), backed by strong 28.7% margins and 16.9% revenue growth. 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.

Texas Capital Bancshares Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Texas Capital Bancshares, Inc. is the banking holding company for Texas Capital Bank, a National Association that offers various banking products and services for commercial companies, professionals and entrepreneurs. The company is headquartered in Dallas, Texas.

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