WallStSmart

Lexinfintech Holdings Ltd (LX)vsRoyal Bank of Canada (RY)

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Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 418% more annual revenue ($67.15B vs $12.96B). RY leads profitability with a 33.9% profit margin vs 8.0%. LX trades at a lower P/E of 0.8x. RY earns a higher WallStSmart Score of 66/100 (B-).

LX

Hold

39

out of 100

Grade: F

Growth: 3.3Profit: 4.5Value: 6.7Quality: 8.0
Piotroski: 5/9Altman Z: 2.52

RY

Strong Buy

66

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

LX2 strengths · Avg: 10.0/10
P/E RatioValuation
0.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.1x10/10

Reasonable price relative to book value

RY5 strengths · Avg: 9.2/10
Market CapQuality
$281.45B10/10

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
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Areas to Watch

LX4 concerns · Avg: 2.0/10
Market CapQuality
$124.07M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-11.2%2/10

Revenue declined 11.2%

EPS GrowthGrowth
-79.0%2/10

Earnings declined 79.0%

Operating MarginProfitability
-3.3%1/10

Operating margin of -3.3%

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.264/10

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 : LX

The strongest argument for LX centers on P/E Ratio, Price/Book.

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 : LX

The primary concerns for LX are Market Cap, Revenue Growth, EPS Growth.

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

LX profiles as a value stock while RY is a mature play — different risk/reward profiles.

RY carries more volatility with a beta of 0.92 — expect wider price swings.

RY is growing revenue faster at 8.9% — sustainability is the question.

Monitor CREDIT SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RY scores higher overall (66/100 vs 39/100), backed by strong 33.9% 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.

Lexinfintech Holdings Ltd

FINANCIAL SERVICES · CREDIT SERVICES · China

LexinFintech Holdings Ltd., is an online consumer finance and consumer platform for young professionals in the People's Republic of China. The company is headquartered in Shenzhen, the People's Republic of China.

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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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