Royal Bank of Canada (RY)vsWells Fargo & Company (WFC)
RY
Royal Bank of Canada
$202.98
-1.48%
FINANCIAL SERVICES · Cap: $281.07B
WFC
Wells Fargo & Company
$83.40
-1.66%
FINANCIAL SERVICES · Cap: $250.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Wells Fargo & Company generates 24% more annual revenue ($83.11B vs $67.15B). RY leads profitability with a 33.9% profit margin vs 27.6%. WFC appears more attractively valued with a PEG of 1.30. WFC earns a higher WallStSmart Score of 74/100 (B).
RY
Strong Buy68
out of 100
Grade: B-
WFC
Strong Buy74
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
Mega-cap, among the largest globally
Attractively priced relative to earnings
Strong operational efficiency at 34.2%
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Generating 6.8B 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
0.4% revenue growth
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 : WFC
The strongest argument for WFC centers on Market Cap, P/E Ratio, Operating Margin. Profitability is solid with margins at 27.6% and operating margin at 34.2%. PEG of 1.30 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 : WFC
The primary concerns for WFC are Revenue Growth, Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
RY profiles as a mature stock while WFC is a value play — different risk/reward profiles.
WFC carries more volatility with a beta of 0.95 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
WFC generates stronger free cash flow (6.8B), providing more financial flexibility.
Bottom Line
WFC scores higher overall (74/100 vs 68/100), backed by strong 27.6% 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.
Wells Fargo & Company
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.
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