Live Oak Bancshares, Inc. (LOB)vsRoyal Bank of Canada (RY)
LOB
Live Oak Bancshares, Inc.
$40.97
-0.45%
FINANCIAL SERVICES · Cap: $1.89B
RY
Royal Bank of Canada
$203.73
-0.48%
FINANCIAL SERVICES · Cap: $282.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 12730% more annual revenue ($65.72B vs $512.21M). RY leads profitability with a 33.7% profit margin vs 24.6%. LOB trades at a lower P/E of 15.6x. LOB earns a higher WallStSmart Score of 74/100 (B).
LOB
Strong Buy74
out of 100
Grade: B
RY
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 35.5%
Revenue surging 33.5% year-over-year
Earnings expanding 185.7% YoY
Conservative balance sheet, low leverage
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 20.8B in free cash flow
16.1% revenue growth
Earnings expanding 27.5% YoY
Areas to Watch
Smaller company, higher risk/reward
Distress zone — elevated risk
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : LOB
The strongest argument for LOB centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 24.6% and operating margin at 35.5%. Revenue growth of 33.5% 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 : LOB
The primary concerns for LOB are Market Cap, Altman Z-Score.
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
LOB carries more volatility with a beta of 1.90 — expect wider price swings.
LOB is growing revenue faster at 33.5% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LOB scores higher overall (74/100 vs 67/100), backed by strong 24.6% margins and 33.5% 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.
Compare with Other BANKS - REGIONAL Stocks
Want to dig deeper into these stocks?