WallStSmart

HDFC Bank Limited ADR (HDB)vsRoyal Bank of Canada (RY)

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Smart Verdict

WallStSmart Research — data-driven comparison

HDFC Bank Limited ADR generates 4396% more annual revenue ($3.02T vs $67.15B). RY leads profitability with a 33.9% profit margin vs 26.5%. HDB appears more attractively valued with a PEG of 1.01. HDB earns a higher WallStSmart Score of 82/100 (A-).

HDB

Exceptional Buy

82

out of 100

Grade: A-

Growth: 9.3Profit: 7.5Value: 6.3Quality: 5.5
Piotroski: 5/9

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HDB6 strengths · Avg: 9.3/10
Operating MarginProfitability
38.5%10/10

Strong operational efficiency at 38.5%

Revenue GrowthGrowth
80.8%10/10

Revenue surging 80.8% year-over-year

Free Cash FlowQuality
$1.72T10/10

Generating 1.7T in free cash flow

Market CapQuality
$109.84B9/10

Large-cap with strong market position

Profit MarginProfitability
26.5%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

RY5 strengths · Avg: 9.2/10
Market CapQuality
$281.07B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.4%10/10

Strong operational efficiency at 46.4%

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

HDB1 concerns · Avg: 4.0/10
Price/BookValuation
10.0x4/10

Trading at 10.0x book value

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
1.894/10

Expensive relative to growth rate

Free Cash FlowQuality
$-28.67B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.881/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : HDB

The strongest argument for HDB centers on Operating Margin, Revenue Growth, Free Cash Flow. Profitability is solid with margins at 26.5% and operating margin at 38.5%. Revenue growth of 80.8% 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 33.9% and operating margin at 46.4%.

Bear Case : HDB

The primary concerns for HDB are Price/Book.

Bear Case : RY

The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.

Key Dynamics to Monitor

HDB profiles as a growth stock while RY is a mature play — different risk/reward profiles.

RY carries more volatility with a beta of 0.91 — expect wider price swings.

HDB is growing revenue faster at 80.8% — sustainability is the question.

HDB generates stronger free cash flow (1.7T), providing more financial flexibility.

Bottom Line

HDB scores higher overall (82/100 vs 68/100), backed by strong 26.5% margins and 80.8% 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.

HDFC Bank Limited ADR

FINANCIAL SERVICES · BANKS - REGIONAL · USA

HDFC Bank Limited offers various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong and Dubai. The company is headquartered in Mumbai, India.

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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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