Merchants Bancorp (MBIN)vsRoyal Bank of Canada (RY)
MBIN
Merchants Bancorp
$54.28
+11.30%
FINANCIAL SERVICES · Cap: $2.28B
RY
Royal Bank of Canada
$210.09
+1.76%
FINANCIAL SERVICES · Cap: $299.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 11124% more annual revenue ($65.72B vs $585.48M). MBIN leads profitability with a 39.0% profit margin vs 33.7%. MBIN trades at a lower P/E of 12.1x. MBIN earns a higher WallStSmart Score of 71/100 (B).
MBIN
Strong Buy71
out of 100
Grade: B
RY
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 58.0%
Attractively priced relative to earnings
15.8% revenue growth
Earnings expanding 34.5% 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
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MBIN
The strongest argument for MBIN centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 39.0% and operating margin at 58.0%. Revenue growth of 15.8% 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 : MBIN
The primary concerns for MBIN are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.05 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
MBIN carries more volatility with a beta of 1.15 — 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.
Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MBIN scores higher overall (71/100 vs 67/100), backed by strong 39.0% margins and 15.8% 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.
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.
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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