First American Corporation (FAF)vsRoyal Bank of Canada (RY)
FAF
First American Corporation
$71.78
+0.84%
FINANCIAL SERVICES · Cap: $7.43B
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 741% more annual revenue ($67.15B vs $7.98B). RY leads profitability with a 33.9% profit margin vs 9.3%. RY appears more attractively valued with a PEG of 2.35. FAF earns a higher WallStSmart Score of 70/100 (B).
FAF
Strong Buy70
out of 100
Grade: B
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 50.4% YoY
15.0% revenue growth
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 15.0% 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 33.9% and operating margin at 46.4%.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio.
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.
Key Dynamics to Monitor
FAF profiles as a value stock while RY is a mature play — different risk/reward profiles.
FAF carries more volatility with a beta of 1.23 — expect wider price swings.
FAF is growing revenue faster at 15.0% — sustainability is the question.
FAF generates stronger free cash flow (317M), providing more financial flexibility.
Bottom Line
FAF scores higher overall (70/100 vs 63/100) and 15.0% revenue growth. 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.
First American Corporation
FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA
First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.
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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