PACCAR Inc (PCAR)vsRoyal Bank of Canada (RY)
PCAR
PACCAR Inc
$116.34
+0.47%
INDUSTRIALS · Cap: $60.90B
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 123% more annual revenue ($63.42B vs $28.44B). RY leads profitability with a 33.1% profit margin vs 8.3%. PCAR appears more attractively valued with a PEG of 1.11. RY earns a higher WallStSmart Score of 68/100 (B-).
PCAR
Hold46
out of 100
Grade: D+
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-321.2%
Fair Value
$30.74
Current Price
$116.34
$85.60 premium
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
Large-cap with strong market position
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
Moderate valuation
Weak financial health signals
Revenue declined 13.7%
Earnings declined 35.9%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : PCAR
The strongest argument for PCAR centers on Market Cap. PEG of 1.11 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 33.1% and operating margin at 46.2%.
Bear Case : PCAR
The primary concerns for PCAR are P/E Ratio, Piotroski F-Score, Revenue Growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
PCAR profiles as a value stock while RY is a mature play — different risk/reward profiles.
PCAR carries more volatility with a beta of 1.05 — 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.
Bottom Line
RY scores higher overall (68/100 vs 46/100), backed by strong 33.1% margins. 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.
PACCAR Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.
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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