Royal Bank of Canada (RY)vsThe Travelers Companies Inc (TRV)
RY
Royal Bank of Canada
$201.16
-1.28%
FINANCIAL SERVICES · Cap: $281.07B
TRV
The Travelers Companies Inc
$395.20
-1.91%
FINANCIAL SERVICES · Cap: $81.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 37% more annual revenue ($67.15B vs $48.92B). RY leads profitability with a 33.9% profit margin vs 17.0%. 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-
TRV
Strong Buy66
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
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Reasonable price relative to book value
Strong operational efficiency at 20.0%
Generating 3.9B in free cash flow
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.5%
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 : TRV
The strongest argument for TRV centers on P/E Ratio, Market Cap, Return on Equity. Profitability is solid with margins at 17.0% and operating margin at 20.0%.
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 : TRV
The primary concerns for TRV are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
RY profiles as a mature stock while TRV is a declining play — different risk/reward profiles.
RY carries more volatility with a beta of 0.91 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
TRV generates stronger free cash flow (3.9B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 66/100), 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.
The Travelers Companies Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.
Visit Website →Compare with Other BANKS - DIVERSIFIED Stocks
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