WallStSmart

GlaxoSmithKline PLC ADR (GSK)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 93% more annual revenue ($63.42B vs $32.78B). RY leads profitability with a 33.1% profit margin vs 17.8%. GSK appears more attractively valued with a PEG of 0.50. RY earns a higher WallStSmart Score of 68/100 (B-).

GSK

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 9.0Value: 7.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.26

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

GSKFair Value (-3.1%)

Margin of Safety

-3.1%

Fair Value

$56.71

Current Price

$50.41

$6.30 premium

UndervaluedFair: $56.71Overvalued

Intrinsic value data unavailable for RY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GSK5 strengths · Avg: 9.4/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

Return on EquityProfitability
40.9%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
36.3%10/10

Strong operational efficiency at 36.3%

Market CapQuality
$101.38B9/10

Large-cap with strong market position

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

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

GSK3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

Debt/EquityHealth
1.103/10

Elevated debt levels

Altman Z-ScoreHealth
1.262/10

Distress zone — elevated risk

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

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : GSK

The strongest argument for GSK centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 17.8% and operating margin at 36.3%. PEG of 0.50 suggests the stock is reasonably priced for its growth.

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 : GSK

The primary concerns for GSK are Revenue Growth, Debt/Equity, Altman Z-Score.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

GSK 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.

RY is growing revenue faster at 7.5% — 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 66/100), backed by strong 33.1% margins. 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.

GlaxoSmithKline PLC ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.

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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