Lowe's Companies Inc (LOW)vsRoyal Bank of Canada (RY)
LOW
Lowe's Companies Inc
$236.18
+0.75%
CONSUMER CYCLICAL · Cap: $131.50B
RY
Royal Bank of Canada
$162.50
+0.24%
FINANCIAL SERVICES · Cap: $225.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Lowe's Companies Inc generates 36% more annual revenue ($86.29B vs $63.42B). RY leads profitability with a 33.1% profit margin vs 7.7%. LOW appears more attractively valued with a PEG of 2.40. RY earns a higher WallStSmart Score of 68/100 (B-).
LOW
Hold44
out of 100
Grade: D
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-193.3%
Fair Value
$80.51
Current Price
$236.18
$155.67 premium
Margin of Safety
+44.3%
Fair Value
$306.13
Current Price
$162.50
$143.63 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Large-cap with strong market position
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
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
7.7% margin — thin
Earnings declined 10.8%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : LOW
The strongest argument for LOW centers on Debt/Equity, Market Cap. Revenue growth of 10.9% 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 : LOW
The primary concerns for LOW are PEG Ratio, Return on Equity, Profit Margin.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
LOW 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.
LOW is growing revenue faster at 10.9% — 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 44/100), backed by strong 33.1% margins. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Lowe's Companies Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.
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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