Moodys Corporation (MCO)vsRoyal Bank of Canada (RY)
MCO
Moodys Corporation
$490.36
+4.72%
FINANCIAL SERVICES · Cap: $78.61B
RY
Royal Bank of Canada
$204.79
-0.48%
FINANCIAL SERVICES · Cap: $282.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 735% more annual revenue ($65.72B vs $7.87B). RY leads profitability with a 33.7% profit margin vs 31.7%. MCO appears more attractively valued with a PEG of 2.05. RY earns a higher WallStSmart Score of 67/100 (B-).
MCO
Buy61
out of 100
Grade: C+
RY
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 83 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.7%
Safe zone — low bankruptcy risk
Large-cap with strong market position
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 28.6x book value
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : MCO
The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.7% and operating margin at 45.7%.
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 : MCO
The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.44 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
MCO profiles as a mature stock while RY is a growth play — different risk/reward profiles.
MCO carries more volatility with a beta of 1.34 — 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
RY scores higher overall (67/100 vs 61/100), backed by strong 33.7% margins and 16.1% revenue growth. 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.
Moodys Corporation
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.
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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