Principal Financial Group Inc (PFG)vsRoyal Bank of Canada (RY)
PFG
Principal Financial Group Inc
$110.91
-1.69%
FINANCIAL SERVICES · Cap: $23.80B
RY
Royal Bank of Canada
$201.16
-1.28%
FINANCIAL SERVICES · Cap: $281.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 304% more annual revenue ($67.15B vs $16.63B). RY leads profitability with a 33.9% profit margin vs 11.9%. PFG appears more attractively valued with a PEG of 1.06. PFG earns a higher WallStSmart Score of 79/100 (B+).
PFG
Strong Buy79
out of 100
Grade: B+
RY
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 206.3% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 25.4% year-over-year
Generating 1.5B in free cash flow
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
Weak financial health signals
Distress zone — elevated risk
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : PFG
The strongest argument for PFG centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 25.4% demonstrates continued momentum. PEG of 1.06 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 : PFG
The primary concerns for PFG are Piotroski F-Score, Altman Z-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
PFG profiles as a growth stock while RY is a mature play — different risk/reward profiles.
RY carries more volatility with a beta of 0.91 — expect wider price swings.
PFG is growing revenue faster at 25.4% — sustainability is the question.
PFG generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
PFG scores higher overall (79/100 vs 68/100) and 25.4% revenue growth. 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.
Principal Financial Group Inc
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Principal Financial Group is an American global financial investment management and insurance company headquartered in Des Moines, Iowa.
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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