WallStSmart

Northpointe Bancshares, Inc. (NPB)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 26004% more annual revenue ($67.15B vs $257.25M). NPB leads profitability with a 34.9% profit margin vs 33.9%. NPB trades at a lower P/E of 7.5x. NPB earns a higher WallStSmart Score of 66/100 (B-).

NPB

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 6.7Quality: 3.8
Piotroski: 5/9Altman Z: -0.50

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

NPB4 strengths · Avg: 10.0/10
P/E RatioValuation
7.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
34.9%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
45.1%10/10

Strong operational efficiency at 45.1%

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

NPB3 concerns · Avg: 2.0/10
Market CapQuality
$597.57M3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.661/10

Elevated debt levels

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 : NPB

The strongest argument for NPB centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 34.9% and operating margin at 45.1%.

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 : NPB

The primary concerns for NPB are Market Cap, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.66 is elevated, increasing financial risk.

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

NPB is growing revenue faster at 9.8% — sustainability is the question.

NPB generates stronger free cash flow (4M), providing more financial flexibility.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NPB scores higher overall (66/100 vs 63/100), backed by strong 34.9% 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.

Northpointe Bancshares, Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Northpointe Bancshares, Inc. is the bank holding company for Northpointe Bank provides various banking products and services. The company is headquartered in Grand Rapids, Michigan.

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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