WallStSmart

Royal Bank of Canada (RY)vsWhite Mountains Insurance Group Ltd (WTM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 2154% more annual revenue ($67.15B vs $2.98B). WTM leads profitability with a 37.7% profit margin vs 33.9%. WTM appears more attractively valued with a PEG of 0.81. WTM earns a higher WallStSmart Score of 92/100 (A+).

RY

Buy

63

out of 100

Grade: C+

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

WTM

Exceptional Buy

92

out of 100

Grade: A+

Growth: 9.3Profit: 8.5Value: 7.7Quality: 6.3
Piotroski: 3/9Altman Z: 1.83

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

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%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

WTM6 strengths · Avg: 9.8/10
P/E RatioValuation
4.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
37.7%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
36.4%10/10

Strong operational efficiency at 36.4%

EPS GrowthGrowth
68.8%10/10

Earnings expanding 68.8% YoY

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

Areas to Watch

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

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

WTM3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-25.00M2/10

Negative free cash flow — burning cash

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 : WTM

The strongest argument for WTM centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 37.7% and operating margin at 36.4%. Revenue growth of 22.5% 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 : WTM

The primary concerns for WTM are Altman Z-Score, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

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

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

WTM is growing revenue faster at 22.5% — sustainability is the question.

WTM generates stronger free cash flow (-25M), providing more financial flexibility.

Bottom Line

WTM scores higher overall (92/100 vs 63/100), backed by strong 37.7% margins and 22.5% revenue growth. Both earn "Exceptional 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.

White Mountains Insurance Group Ltd

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

White Mountains Insurance Group, Ltd., provides insurance services in the United States. The company is headquartered in Hamilton, Bermuda.

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