Royal Bank of Canada (RY)vsXp Inc (XP)
RY
Royal Bank of Canada
$203.83
-1.14%
FINANCIAL SERVICES · Cap: $281.45B
XP
Xp Inc
$21.21
+2.07%
FINANCIAL SERVICES · Cap: $10.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 260% more annual revenue ($67.15B vs $18.63B). RY leads profitability with a 33.9% profit margin vs 28.5%. XP trades at a lower P/E of 10.0x. XP earns a higher WallStSmart Score of 73/100 (B).
RY
Strong Buy66
out of 100
Grade: B-
XP
Strong Buy73
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
Strong operational efficiency at 31.2%
Generating 11.1B in free cash flow
Every $100 of equity generates 21 in profit
Keeps 29 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Weak financial health signals
Elevated debt levels
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 : XP
The strongest argument for XP centers on P/E Ratio, Operating Margin, Free Cash Flow. Profitability is solid with margins at 28.5% and operating margin at 31.2%. Revenue growth of 10.6% 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 : XP
The primary concerns for XP are Piotroski F-Score, Debt/Equity. Debt-to-equity of 3.74 is elevated, increasing financial risk.
Key Dynamics to Monitor
XP carries more volatility with a beta of 1.10 — expect wider price swings.
XP is growing revenue faster at 10.6% — sustainability is the question.
XP generates stronger free cash flow (11.1B), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
XP scores higher overall (73/100 vs 66/100), backed by strong 28.5% margins and 10.6% 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.
Xp Inc
FINANCIAL SERVICES · CAPITAL MARKETS · USA
XP Inc. offers financial products and services in Brazil. The company is headquartered in So Paulo, Brazil.
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