WallStSmart

Mercury General Corporation (MCY)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 959% more annual revenue ($63.42B vs $5.99B). RY leads profitability with a 33.1% profit margin vs 9.0%. MCY appears more attractively valued with a PEG of 1.12. MCY earns a higher WallStSmart Score of 73/100 (B).

MCY

Strong Buy

73

out of 100

Grade: B

Growth: 8.0Profit: 7.0Value: 7.0Quality: 6.3
Piotroski: 3/9Altman Z: 1.69

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

MCY4 strengths · Avg: 9.3/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
100.9%10/10

Earnings expanding 100.9% YoY

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

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

MCY2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : MCY

The strongest argument for MCY centers on P/E Ratio, EPS Growth, Return on Equity. Revenue growth of 14.1% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.

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 : MCY

The primary concerns for MCY are Altman Z-Score, Piotroski F-Score.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

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

MCY carries more volatility with a beta of 0.93 — expect wider price swings.

MCY is growing revenue faster at 14.1% — sustainability is the question.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

Bottom Line

MCY scores higher overall (73/100 vs 68/100) 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.

Mercury General Corporation

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

Mercury General Corporation engages in underwriting personal auto insurance in the United States. The company is headquartered in Los Angeles, California.

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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