Live Oak Bancshares, Inc. (LOB)vsRoyal Bank of Canada (RY)
LOB
Live Oak Bancshares, Inc.
$37.27
+0.49%
FINANCIAL SERVICES · Cap: $1.75B
RY
Royal Bank of Canada
$199.50
+0.03%
FINANCIAL SERVICES · Cap: $281.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 12657% more annual revenue ($67.15B vs $526.38M). RY leads profitability with a 33.9% profit margin vs 26.5%. LOB trades at a lower P/E of 13.3x. LOB earns a higher WallStSmart Score of 70/100 (B-).
LOB
Strong Buy70
out of 100
Grade: B-
RY
Strong Buy66
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 38.8%
Conservative balance sheet, low leverage
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Earnings expanding 45.1% YoY
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
Distress zone — elevated risk
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : LOB
The strongest argument for LOB centers on Price/Book, Operating Margin, Debt/Equity. Profitability is solid with margins at 26.5% and operating margin at 38.8%. Revenue growth of 12.2% 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 33.9% and operating margin at 46.4%.
Bear Case : LOB
The primary concerns for LOB are Market Cap, Altman Z-Score.
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
LOB carries more volatility with a beta of 1.87 — expect wider price swings.
LOB is growing revenue faster at 12.2% — sustainability is the question.
LOB generates stronger free cash flow (28M), providing more financial flexibility.
Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LOB scores higher overall (70/100 vs 66/100), backed by strong 26.5% margins and 12.2% revenue growth. 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.
Live Oak Bancshares, Inc.
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Live Oak Bancshares, Inc. is the banking holding company for Live Oak Banking Company offering a variety of commercial banking products and services to individuals, small businesses and professionals in North Carolina, United States. The company is headquartered in Wilmington, North Carolina.
Visit Website →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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