WallStSmart

Merchants Bancorp (MBIN)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 11152% more annual revenue ($63.42B vs $563.69M). MBIN leads profitability with a 38.8% profit margin vs 33.1%. MBIN trades at a lower P/E of 13.1x. RY earns a higher WallStSmart Score of 68/100 (B-).

MBIN

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 6.0Quality: 4.0
Piotroski: 2/9Altman Z: 0.58

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MBIN4 strengths · Avg: 9.5/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.8%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
52.0%10/10

Strong operational efficiency at 52.0%

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

RY6 strengths · Avg: 9.3/10
Market CapQuality
$250.25B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

MBIN4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-17.6%2/10

Revenue declined 17.6%

EPS GrowthGrowth
-30.6%2/10

Earnings declined 30.6%

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : MBIN

The strongest argument for MBIN centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 38.8% and operating margin at 52.0%.

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 : MBIN

The primary concerns for MBIN are Debt/Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

MBIN profiles as a declining stock while RY is a mature play — different risk/reward profiles.

MBIN carries more volatility with a beta of 1.16 — expect wider price swings.

RY is growing revenue faster at 7.5% — 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 51/100), backed by strong 33.1% margins. Both earn "Strong Buy" and "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.

Merchants Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Merchants Bancorp is the diversified bank holding company in the United States. The company is headquartered in Carmel, Indiana.

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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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