WallStSmart

Carnival Corporation (CCL)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 138% more annual revenue ($63.42B vs $26.62B). RY leads profitability with a 33.1% profit margin vs 10.4%. CCL appears more attractively valued with a PEG of 1.09. CCL earns a higher WallStSmart Score of 72/100 (B).

CCL

Strong Buy

72

out of 100

Grade: B

Growth: 8.7Profit: 7.0Value: 10.0Quality: 3.0
Piotroski: 5/9Altman Z: 0.89

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 10.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CCLUndervalued (+65.0%)

Margin of Safety

+65.0%

Fair Value

$94.54

Current Price

$25.73

$68.81 discount

UndervaluedFair: $94.54Overvalued
RYUndervalued (+44.3%)

Margin of Safety

+44.3%

Fair Value

$306.13

Current Price

$162.50

$143.63 discount

UndervaluedFair: $306.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CCL4 strengths · Avg: 8.3/10
Return on EquityProfitability
25.6%9/10

Every $100 of equity generates 26 in profit

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

EPS GrowthGrowth
35.8%8/10

Earnings expanding 35.8% YoY

RY6 strengths · Avg: 9.3/10
Market CapQuality
$225.89B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

CCL2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.892/10

Distress zone — elevated risk

Debt/EquityHealth
2.281/10

Elevated debt levels

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CCL

The strongest argument for CCL centers on Return on Equity, P/E Ratio, Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bull Case : RY

The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.

Bear Case : CCL

The primary concerns for CCL are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.28 is elevated, increasing financial risk.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

CCL profiles as a value stock while RY is a mature play — different risk/reward profiles.

CCL carries more volatility with a beta of 2.46 — expect wider price swings.

RY is growing revenue faster at 7.5% — sustainability is the question.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

Bottom Line

CCL scores higher overall (72/100 vs 68/100). RY offers better value entry with a 44.3% margin of safety. 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.

Carnival Corporation

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Carnival Corporation & plc is a British-American cruise operator, currently the world's largest travel leisure company, with a combined fleet of over 100 vessels across 10 cruise line brands.

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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.

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