Goldman Sachs Group Inc (GS)vsRoyal Bank of Canada (RY)
GS
Goldman Sachs Group Inc
$805.48
+0.50%
FINANCIAL SERVICES · Cap: $242.05B
RY
Royal Bank of Canada
$162.35
-1.14%
FINANCIAL SERVICES · Cap: $229.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 7% more annual revenue ($63.42B vs $59.40B). RY leads profitability with a 33.1% profit margin vs 28.9%. GS appears more attractively valued with a PEG of 1.41. GS earns a higher WallStSmart Score of 73/100 (B).
GS
Strong Buy73
out of 100
Grade: B
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+55.0%
Fair Value
$1797.44
Current Price
$805.48
$991.96 discount
Margin of Safety
+43.9%
Fair Value
$304.40
Current Price
$162.35
$142.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 38.3%
Keeps 29 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
15.2% revenue growth
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Negative free cash flow — burning cash
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GS
The strongest argument for GS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 28.9% and operating margin at 38.3%. Revenue growth of 15.2% 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 33.1% and operating margin at 46.2%.
Bear Case : GS
The primary concerns for GS are Free Cash Flow.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
GS profiles as a growth stock while RY is a mature play — different risk/reward profiles.
GS carries more volatility with a beta of 1.34 — expect wider price swings.
GS is growing revenue faster at 15.2% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
GS scores higher overall (73/100 vs 68/100), backed by strong 28.9% margins and 15.2% revenue growth. RY offers better value entry with a 43.9% margin of safety. 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.
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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