Canadian Natural Resources Ltd (CNQ)vsRoyal Bank of Canada (RY)
CNQ
Canadian Natural Resources Ltd
$49.02
+1.32%
ENERGY · Cap: $102.25B
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 64% more annual revenue ($63.42B vs $38.76B). RY leads profitability with a 33.1% profit margin vs 27.9%. RY appears more attractively valued with a PEG of 2.41. RY earns a higher WallStSmart Score of 68/100 (B-).
CNQ
Strong Buy67
out of 100
Grade: B-
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.9%
Fair Value
$175.97
Current Price
$49.02
$126.95 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
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
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
1.5% revenue growth
3.7% earnings growth
Expensive relative to growth rate
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CNQ
The strongest argument for CNQ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 19.6%.
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 : CNQ
The primary concerns for CNQ are Revenue Growth, EPS Growth, PEG Ratio.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
CNQ profiles as a value stock while RY is a mature play — different risk/reward profiles.
CNQ carries more volatility with a beta of 1.06 — 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
RY scores higher overall (68/100 vs 67/100), backed by strong 33.1% margins. CNQ offers better value entry with a 76.9% 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.
Canadian Natural Resources Ltd
ENERGY · OIL & GAS E&P · USA
Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, 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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