WallStSmart

General Dynamics Corporation (GD)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 18% more annual revenue ($63.42B vs $53.81B). RY leads profitability with a 33.1% profit margin vs 8.1%. RY appears more attractively valued with a PEG of 2.30. RY earns a higher WallStSmart Score of 68/100 (B-).

GD

Buy

60

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 3.3Quality: 7.0
Piotroski: 6/9Altman Z: 2.95

RY

Strong Buy

68

out of 100

Grade: B-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GDSignificantly Overvalued (-22.2%)

Margin of Safety

-22.2%

Fair Value

$293.63

Current Price

$346.53

$52.90 premium

UndervaluedFair: $293.63Overvalued

Intrinsic value data unavailable for RY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GD2 strengths · Avg: 8.5/10
Market CapQuality
$93.71B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.95B8/10

Generating 2.0B in free cash flow

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

GD1 concerns · Avg: 2.0/10
PEG RatioValuation
2.582/10

Expensive relative to growth rate

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

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GD

The strongest argument for GD centers on Market Cap, Free Cash Flow. Revenue growth of 10.3% 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 : GD

The primary concerns for GD are PEG Ratio.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

GD profiles as a value stock while RY is a mature play — different risk/reward profiles.

RY carries more volatility with a beta of 0.94 — expect wider price swings.

GD is growing revenue faster at 10.3% — 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 60/100), 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.

General Dynamics Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Dynamics Corporation (GD) is an American aerospace and defense corporation. It is headquartered in Reston, Fairfax County, Virginia.

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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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