WallStSmart

Royal Bank of Canada (RY)vsUnited Community Banks, Inc. (UCB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 5958% more annual revenue ($67.15B vs $1.11B). UCB leads profitability with a 34.1% profit margin vs 33.9%. UCB appears more attractively valued with a PEG of 1.67. UCB earns a higher WallStSmart Score of 79/100 (B+).

RY

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

UCB

Strong Buy

79

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 6.3Quality: 7.5
Piotroski: 6/9Altman Z: 0.41

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY5 strengths · Avg: 9.2/10
Market CapQuality
$281.45B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.4%10/10

Strong operational efficiency at 46.4%

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

UCB6 strengths · Avg: 9.8/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
34.1%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
50.9%10/10

Strong operational efficiency at 50.9%

EPS GrowthGrowth
50.8%10/10

Earnings expanding 50.8% YoY

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Areas to Watch

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.264/10

Expensive relative to growth rate

Free Cash FlowQuality
$-28.67B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.881/10

Elevated debt levels

UCB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.674/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.412/10

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 33.9% and operating margin at 46.4%.

Bull Case : UCB

The strongest argument for UCB centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 34.1% and operating margin at 50.9%. Revenue growth of 24.4% 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 : UCB

The primary concerns for UCB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

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

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

UCB is growing revenue faster at 24.4% — sustainability is the question.

UCB generates stronger free cash flow (121M), providing more financial flexibility.

Bottom Line

UCB scores higher overall (79/100 vs 66/100), backed by strong 34.1% margins and 24.4% 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.

United Community Banks, Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

United Community Banks, Inc. (UCB), headquartered in Blairsville, Georgia, operates as a leading regional bank providing a comprehensive suite of financial services, including commercial and retail banking, mortgage lending, and wealth management, with a strong presence in the Southeastern U.S. The bank's strategic emphasis on community engagement and prudent growth through targeted acquisitions positions it well for sustained profitability and expansion. UCB maintains robust risk management protocols and a steadfast commitment to customer service, reinforcing its reputation as a trusted financial partner for both individuals and businesses. With a focus on innovation aligned with core values, UCB is poised to navigate the evolving financial landscape effectively.

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