Morningstar Inc (MORN)vsRoyal Bank of Canada (RY)
MORN
Morningstar Inc
$185.76
+1.01%
FINANCIAL SERVICES · Cap: $6.66B
RY
Royal Bank of Canada
$194.04
-0.48%
FINANCIAL SERVICES · Cap: $277.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 2520% more annual revenue ($65.72B vs $2.51B). RY leads profitability with a 33.7% profit margin vs 16.1%. MORN appears more attractively valued with a PEG of 2.31. RY earns a higher WallStSmart Score of 70/100 (B-).
MORN
Strong Buy67
out of 100
Grade: B-
RY
Strong Buy70
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 40 in profit
Earnings expanding 50.0% YoY
Attractively priced relative to earnings
Strong operational efficiency at 24.2%
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 37.3B in free cash flow
Reasonable price relative to book value
16.1% revenue growth
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : MORN
The strongest argument for MORN centers on Return on Equity, EPS Growth, P/E Ratio. Profitability is solid with margins at 16.1% and operating margin at 24.2%. Revenue growth of 10.8% 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 : MORN
The primary concerns for MORN are PEG Ratio, Debt/Equity. Debt-to-equity of 1.87 is elevated, increasing financial risk.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
MORN profiles as a mature stock while RY is a growth play — different risk/reward profiles.
MORN carries more volatility with a beta of 0.99 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (70/100 vs 67/100), backed by strong 33.7% margins and 16.1% 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.
Morningstar Inc
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
Morningstar, Inc. offers independent investment research services in North America, Europe, Australia, and Asia. The company is headquartered in Chicago, Illinois.
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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