WallStSmart

Goldman Sachs Group Inc (GS)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Goldman Sachs Group Inc generates 3% more annual revenue ($67.57B vs $65.72B). RY leads profitability with a 33.7% profit margin vs 31.0%. GS appears more attractively valued with a PEG of 1.54. GS earns a higher WallStSmart Score of 81/100 (A-).

GS

Exceptional Buy

81

out of 100

Grade: A-

Growth: 10.0Profit: 8.0Value: 5.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.14

RY

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GS6 strengths · Avg: 9.7/10
Market CapQuality
$311.24B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
31.0%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
42.3%10/10

Strong operational efficiency at 42.3%

Revenue GrowthGrowth
42.5%10/10

Revenue surging 42.5% year-over-year

EPS GrowthGrowth
92.3%10/10

Earnings expanding 92.3% YoY

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

RY6 strengths · Avg: 9.3/10
Market CapQuality
$291.15B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Free Cash FlowQuality
$20.82B10/10

Generating 20.8B in free cash flow

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

EPS GrowthGrowth
27.5%8/10

Earnings expanding 27.5% YoY

Areas to Watch

GS4 concerns · Avg: 2.3/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Free Cash FlowQuality
$-32.43B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.142/10

Distress zone — elevated risk

Debt/EquityHealth
6.471/10

Elevated debt levels

RY3 concerns · Avg: 2.3/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.771/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : GS

The strongest argument for GS centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.0% and operating margin at 42.3%. Revenue growth of 42.5% 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 : GS

The primary concerns for GS are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 6.47 is elevated, increasing financial risk.

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

GS carries more volatility with a beta of 1.29 — expect wider price swings.

GS is growing revenue faster at 42.5% — sustainability is the question.

RY generates stronger free cash flow (20.8B), providing more financial flexibility.

Monitor CAPITAL MARKETS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GS scores higher overall (81/100 vs 67/100), backed by strong 31.0% margins and 42.5% revenue growth. Both earn "Exceptional 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.

Goldman Sachs Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

The Goldman Sachs Group, Inc., is an American multinational investment bank and financial services company headquartered in New York City. It offers services in investment management, securities, asset management, prime brokerage, and securities underwriting. It also provides investment banking to institutional investors.

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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