Royal Bank of Canada (RY)vsTexas Capital Bancshares, Inc. (TCBI)
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
TCBI
Texas Capital Bancshares, Inc.
$99.09
+0.19%
FINANCIAL SERVICES · Cap: $4.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 5186% more annual revenue ($67.15B vs $1.27B). RY leads profitability with a 33.9% profit margin vs 28.7%. TCBI appears more attractively valued with a PEG of 1.47. TCBI earns a higher WallStSmart Score of 73/100 (B).
RY
Buy63
out of 100
Grade: C+
TCBI
Strong Buy73
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%
Reasonable price relative to book value
Reasonable price relative to book value
Strong operational efficiency at 36.7%
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
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 : TCBI
The strongest argument for TCBI centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 28.7% and operating margin at 36.7%. PEG of 1.47 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 : TCBI
The primary concerns for TCBI are Altman Z-Score.
Key Dynamics to Monitor
RY carries more volatility with a beta of 0.92 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
TCBI generates stronger free cash flow (97M), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TCBI scores higher overall (73/100 vs 63/100), backed by strong 28.7% margins. 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.
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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