Mastercard Inc (MA)vsRoyal Bank of Canada (RY)
MA
Mastercard Inc
$562.95
-2.26%
FINANCIAL SERVICES · Cap: $500.29B
RY
Royal Bank of Canada
$211.08
-0.17%
FINANCIAL SERVICES · Cap: $291.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 87% more annual revenue ($65.72B vs $35.08B). MA leads profitability with a 46.3% profit margin vs 33.7%. MA appears more attractively valued with a PEG of 1.76. MA earns a higher WallStSmart Score of 70/100 (B).
MA
Strong Buy70
out of 100
Grade: B
RY
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 232 in profit
Keeps 46 of every $100 in revenue as profit
Strong operational efficiency at 61.1%
Safe zone — low bankruptcy risk
Earnings expanding 22.1% YoY
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
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 88.0x book value
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MA
The strongest argument for MA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 46.3% and operating margin at 61.1%. Revenue growth of 14.1% 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 : MA
The primary concerns for MA are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.82 is elevated, increasing financial risk.
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
MA profiles as a mature stock while RY is a growth play — different risk/reward profiles.
RY carries more volatility with a beta of 0.93 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Bottom Line
MA scores higher overall (70/100 vs 67/100), backed by strong 46.3% margins and 14.1% 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.
Mastercard Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.
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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