First American Corporation (FAF)vsRoyal Bank of Canada (RY)
FAF
First American Corporation
$78.17
-1.25%
FINANCIAL SERVICES · Cap: $7.44B
RY
Royal Bank of Canada
$210.09
+1.76%
FINANCIAL SERVICES · Cap: $299.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 753% more annual revenue ($65.72B vs $7.71B). RY leads profitability with a 33.7% profit margin vs 8.7%. RY appears more attractively valued with a PEG of 2.34. FAF earns a higher WallStSmart Score of 68/100 (B-).
FAF
Strong Buy68
out of 100
Grade: B-
RY
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 70.4% YoY
16.2% revenue growth
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 20.8B in free cash flow
16.1% revenue growth
Earnings expanding 27.5% YoY
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
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 16.2% 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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
FAF carries more volatility with a beta of 1.25 — expect wider price swings.
FAF is growing revenue faster at 16.2% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Monitor INSURANCE - SPECIALTY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FAF scores higher overall (68/100 vs 67/100) and 16.2% revenue growth. 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.
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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