Royal Bank of Canada (RY)vsTFS Financial Corporation (TFSL)
RY
Royal Bank of Canada
$204.77
+0.86%
FINANCIAL SERVICES · Cap: $281.07B
TFSL
TFS Financial Corporation
$16.76
+0.54%
FINANCIAL SERVICES · Cap: $4.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 19239% more annual revenue ($67.15B vs $347.23M). RY leads profitability with a 33.9% profit margin vs 29.4%. RY appears more attractively valued with a PEG of 1.89. RY earns a higher WallStSmart Score of 68/100 (B-).
RY
Strong Buy68
out of 100
Grade: B-
TFSL
Buy64
out of 100
Grade: C+
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
Strong operational efficiency at 45.4%
Keeps 29 of every $100 in revenue as profit
Reasonable price relative to book value
15.2% revenue growth
Earnings expanding 42.5% YoY
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
ROE of 4.8% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : TFSL
The strongest argument for TFSL centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 29.4% and operating margin at 45.4%. Revenue growth of 15.2% demonstrates continued momentum.
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 : TFSL
The primary concerns for TFSL are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 45.4x leaves little room for execution misses. Debt-to-equity of 2.97 is elevated, increasing financial risk.
Key Dynamics to Monitor
RY profiles as a mature stock while TFSL is a growth play — different risk/reward profiles.
RY carries more volatility with a beta of 0.91 — expect wider price swings.
TFSL is growing revenue faster at 15.2% — sustainability is the question.
TFSL generates stronger free cash flow (29M), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 64/100), backed by strong 33.9% 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.
TFS Financial Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
TFS Financial Corporation, provides retail banking services for consumers in the United States.
Visit Website →Compare with Other BANKS - DIVERSIFIED Stocks
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