WallStSmart

Moelis & Co (MC)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 4166% more annual revenue ($67.15B vs $1.57B). RY leads profitability with a 33.9% profit margin vs 14.5%. MC appears more attractively valued with a PEG of 1.97. RY earns a higher WallStSmart Score of 63/100 (C+).

MC

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 8.5Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: 1.57

RY

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MC1 strengths · Avg: 10.0/10
Return on EquityProfitability
45.4%10/10

Every $100 of equity generates 45 in profit

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

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%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

MC3 concerns · Avg: 4.0/10
PEG RatioValuation
1.974/10

Expensive relative to growth rate

Price/BookValuation
9.4x4/10

Trading at 9.4x book value

Altman Z-ScoreHealth
1.574/10

Distress zone — elevated risk

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

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 : MC

The strongest argument for MC centers on Return on Equity. Revenue growth of 12.0% 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 33.9% and operating margin at 46.4%.

Bear Case : MC

The primary concerns for MC are PEG Ratio, Price/Book, Altman Z-Score.

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

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

MC carries more volatility with a beta of 1.84 — expect wider price swings.

MC is growing revenue faster at 12.0% — sustainability is the question.

MC generates stronger free cash flow (218M), providing more financial flexibility.

Bottom Line

MC scores higher overall (63/100 vs 63/100) and 12.0% revenue growth. Both earn "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.

Moelis & Co

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Moelis & Company is an investment banking advisory firm in the United States, Europe, and internationally. The company is headquartered in New York, New York.

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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