WallStSmart

Eaton Corporation PLC (ETN)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 122% more annual revenue ($63.42B vs $28.52B). RY leads profitability with a 33.1% profit margin vs 14.0%. RY appears more attractively valued with a PEG of 2.30. RY earns a higher WallStSmart Score of 68/100 (B-).

ETN

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 7.0Value: 3.7Quality: 5.0
Piotroski: 4/9

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ETN3 strengths · Avg: 8.7/10
Market CapQuality
$154.99B9/10

Large-cap with strong market position

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

Revenue GrowthGrowth
16.8%8/10

16.8% revenue growth

RY6 strengths · Avg: 9.3/10
Market CapQuality
$252.56B10/10

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
17.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

ETN3 concerns · Avg: 2.7/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
3.042/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.4%2/10

Earnings declined 9.4%

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ETN

The strongest argument for ETN centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 16.8% demonstrates continued momentum.

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 : ETN

The primary concerns for ETN are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

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

ETN carries more volatility with a beta of 1.24 — expect wider price swings.

ETN is growing revenue faster at 16.8% — 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 51/100), backed by strong 33.1% margins. Both earn "Strong 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.

Eaton Corporation PLC

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.

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.

Want to dig deeper into these stocks?