New Mountain Finance Corporation (NMFC)vsRoyal Bank of Canada (RY)
NMFC
New Mountain Finance Corporation
$7.65
+4.08%
FINANCIAL SERVICES · Cap: $648.89M
RY
Royal Bank of Canada
$211.45
+0.09%
FINANCIAL SERVICES · Cap: $291.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 21084% more annual revenue ($65.72B vs $310.21M). RY leads profitability with a 33.7% profit margin vs -18.6%. NMFC appears more attractively valued with a PEG of 1.34. RY earns a higher WallStSmart Score of 67/100 (B-).
NMFC
Hold46
out of 100
Grade: D+
RY
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 84.5%
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
Smaller company, higher risk/reward
Elevated debt levels
Weak financial health signals
ROE of -5.5% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : NMFC
The strongest argument for NMFC centers on Price/Book, Operating Margin. PEG of 1.34 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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : NMFC
The primary concerns for NMFC are Market Cap, Debt/Equity, Piotroski F-Score.
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
NMFC profiles as a turnaround stock while RY is a growth play — different risk/reward profiles.
RY carries more volatility with a beta of 0.93 — 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 46/100), 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.
New Mountain Finance Corporation
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
New Mountain Finance Corporation (NMFC) is a leading business development company focused on delivering tailored debt and equity financing solutions for middle-market enterprises across a variety of industries. Strategically backed by New Mountain Capital, NMFC emphasizes a disciplined investment approach aimed at capital preservation and sustainable income, thereby providing attractive risk-adjusted returns for its investors. With a seasoned management team and a strong commitment to shareholder value, NMFC is adept at managing the complexities of the middle-market, positioning itself for resilience and growth in a competitive investment environment.
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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