Royal Bank of Canada (RY)vsWebster Financial Corporation (WBS)
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
WBS
Webster Financial Corporation
$77.57
0.00%
FINANCIAL SERVICES · Cap: $12.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 2325% more annual revenue ($67.15B vs $2.77B). WBS leads profitability with a 36.8% profit margin vs 33.9%. WBS appears more attractively valued with a PEG of 1.73. WBS earns a higher WallStSmart Score of 66/100 (B-).
RY
Buy63
out of 100
Grade: C+
WBS
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%
Reasonable price relative to book value
Reasonable price relative to book value
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 50.6%
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
Expensive relative to growth rate
2.8% earnings growth
Negative free cash flow — burning cash
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 : WBS
The strongest argument for WBS centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 36.8% and operating margin at 50.6%.
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 : WBS
The primary concerns for WBS are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
WBS carries more volatility with a beta of 1.00 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
WBS generates stronger free cash flow (-141M), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WBS scores higher overall (66/100 vs 63/100), backed by strong 36.8% 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.
Webster Financial Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Webster Financial Corporation is the banking holding company for Webster Bank, a National Association that provides a variety of banking, investment, and financial services to individuals, families, and businesses in the United States. The company is headquartered in Waterbury, Connecticut.
Compare with Other BANKS - DIVERSIFIED Stocks
Want to dig deeper into these stocks?