WallStSmart

Monroe Capital Corp (MRCC)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 177196% more annual revenue ($67.15B vs $37.88M). RY leads profitability with a 33.9% profit margin vs -13.5%. MRCC appears more attractively valued with a PEG of 2.05. RY earns a higher WallStSmart Score of 63/100 (C+).

MRCC

Hold

39

out of 100

Grade: F

Growth: 4.7Profit: 5.0Value: 4.7Quality: 5.0

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

MRCC2 strengths · Avg: 10.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
69.0%10/10

Strong operational efficiency at 69.0%

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

MRCC4 concerns · Avg: 2.8/10
PEG RatioValuation
2.054/10

Expensive relative to growth rate

Market CapQuality
$110.06M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-2.9%2/10

ROE of -2.9% — below average capital efficiency

Revenue GrowthGrowth
-41.8%2/10

Revenue declined 41.8%

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 : MRCC

The strongest argument for MRCC centers on Price/Book, Operating Margin.

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 : MRCC

The primary concerns for MRCC are PEG Ratio, Market Cap, Return on Equity.

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

MRCC profiles as a turnaround stock while RY is a mature play — different risk/reward profiles.

RY carries more volatility with a beta of 0.92 — expect wider price swings.

RY is growing revenue faster at 8.9% — sustainability is the question.

MRCC generates stronger free cash flow (-106,000), providing more financial flexibility.

Bottom Line

RY scores higher overall (63/100 vs 39/100), backed by strong 33.9% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Monroe Capital Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Monroe Capital Corporation is a business development company specializing in customized financing solutions in senior, unitranche, and junior secured debt and, to a lesser extent, unsecured debt and equity, including equity joint ventures in preferred and common stocks and warrants.

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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