WallStSmart

The9 Ltd ADR (NCTY)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 60807% more annual revenue ($65.72B vs $107.90M). RY leads profitability with a 33.7% profit margin vs 0.0%. RY earns a higher WallStSmart Score of 70/100 (B-).

NCTY

Hold

40

out of 100

Grade: D

Growth: 6.0Profit: 2.5Value: 5.0Quality: 3.5
Piotroski: 3/9Altman Z: -12.94

RY

Strong Buy

70

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 4.3Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NCTY2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
133.5%10/10

Revenue surging 133.5% year-over-year

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

RY6 strengths · Avg: 9.3/10
Market CapQuality
$277.29B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

Areas to Watch

NCTY4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$72.24M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

RY1 concerns · Avg: 2.0/10
PEG RatioValuation
2.532/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : NCTY

The strongest argument for NCTY centers on Revenue Growth, Price/Book. Revenue growth of 133.5% 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 : NCTY

The primary concerns for NCTY are EPS Growth, Market Cap, Profit Margin.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

NCTY profiles as a hypergrowth stock while RY is a growth play — different risk/reward profiles.

NCTY carries more volatility with a beta of 2.13 — expect wider price swings.

NCTY is growing revenue faster at 133.5% — 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 40/100), backed by strong 33.7% margins and 16.1% revenue growth. Both earn "Strong 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.

The9 Ltd ADR

FINANCIAL SERVICES · CAPITAL MARKETS · China

The9 Limited, is an Internet company in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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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