Bank of N.T. Butterfield & Son Ltd (NTB)vsRoyal Bank of Canada (RY)
NTB
Bank of N.T. Butterfield & Son Ltd
$51.84
+0.56%
FINANCIAL SERVICES · Cap: $2.14B
RY
Royal Bank of Canada
$162.50
+0.24%
FINANCIAL SERVICES · Cap: $225.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 10352% more annual revenue ($63.42B vs $606.79M). NTB leads profitability with a 38.2% profit margin vs 33.1%. NTB appears more attractively valued with a PEG of 1.96. NTB earns a higher WallStSmart Score of 77/100 (B+).
NTB
Strong Buy77
out of 100
Grade: B+
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.8%
Fair Value
$240.24
Current Price
$51.84
$188.40 discount
Margin of Safety
+44.3%
Fair Value
$306.13
Current Price
$162.50
$143.63 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 32.3%
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Earnings expanding 23.2% YoY
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : NTB
The strongest argument for NTB centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 38.2% and operating margin at 32.3%.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.
Bear Case : NTB
The primary concerns for NTB are PEG Ratio.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
RY carries more volatility with a beta of 0.94 — expect wider price swings.
RY is growing revenue faster at 7.5% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NTB scores higher overall (77/100 vs 68/100), backed by strong 38.2% margins. RY offers better value entry with a 44.3% margin of safety. Both earn "Strong Buy" and "Strong 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.
Bank of N.T. Butterfield & Son Ltd
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
The Bank of NT Butterfield & Son Limited offers a variety of community, commercial and private banking services to individuals and small and medium-sized businesses. The company is headquartered in Hamilton, Bermuda.
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.
Compare with Other BANKS - DIVERSIFIED Stocks
Want to dig deeper into these stocks?