Celestica Inc. (CLS)vsRoyal Bank of Canada (RY)
CLS
Celestica Inc.
$302.22
+0.23%
TECHNOLOGY · Cap: $34.73B
RY
Royal Bank of Canada
$162.50
+0.24%
FINANCIAL SERVICES · Cap: $225.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 412% more annual revenue ($63.42B vs $12.39B). RY leads profitability with a 33.1% profit margin vs 6.7%. CLS appears more attractively valued with a PEG of 1.00. RY earns a higher WallStSmart Score of 68/100 (B-).
CLS
Strong Buy68
out of 100
Grade: B-
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+11.6%
Fair Value
$334.62
Current Price
$302.22
$32.40 discount
Margin of Safety
+44.3%
Fair Value
$306.13
Current Price
$162.50
$143.63 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 41 in profit
Revenue surging 43.6% year-over-year
Earnings expanding 77.7% YoY
Growing faster than its price suggests
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Trading at 15.7x book value
6.7% margin — thin
Premium valuation, high expectations priced in
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CLS
The strongest argument for CLS centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 43.6% demonstrates continued momentum. PEG of 1.00 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 : CLS
The primary concerns for CLS are Price/Book, Profit Margin, P/E Ratio. A P/E of 42.2x leaves little room for execution misses.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
CLS profiles as a hypergrowth stock while RY is a mature play — different risk/reward profiles.
CLS carries more volatility with a beta of 1.38 — expect wider price swings.
CLS is growing revenue faster at 43.6% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
CLS scores higher overall (68/100 vs 68/100) and 43.6% revenue growth. 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.
Celestica Inc.
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
Celestica Inc. provides hardware platforms and supply chain solutions in North America, Europe, and Asia. The company is headquartered in Toronto, Canada.
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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