New Mountain Finance Corporation (NMFC)vsRoyal Bank of Canada (RY)
NMFC
New Mountain Finance Corporation
$6.99
-1.96%
FINANCIAL SERVICES · Cap: $660.22M
RY
Royal Bank of Canada
$203.30
-0.13%
FINANCIAL SERVICES · Cap: $281.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 23200% more annual revenue ($67.15B vs $288.20M). RY leads profitability with a 33.9% profit margin vs -16.8%. NMFC appears more attractively valued with a PEG of 1.34. RY earns a higher WallStSmart Score of 66/100 (B-).
NMFC
Buy56
out of 100
Grade: C
RY
Strong Buy66
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 76.6%
Earnings expanding 157.1% YoY
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Smaller company, higher risk/reward
Elevated debt levels
Weak financial health signals
ROE of -4.7% — below average capital efficiency
Expensive relative to growth rate
Negative free cash flow — burning cash
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, EPS Growth. 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 33.9% and operating margin at 46.4%.
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, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Key Dynamics to Monitor
NMFC 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.
NMFC generates stronger free cash flow (24M), providing more financial flexibility.
Bottom Line
RY scores higher overall (66/100 vs 56/100), backed by strong 33.9% margins. Both earn "Strong Buy" and "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.
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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