PennantPark Floating Rate Capital Ltd (PFLT)vsRoyal Bank of Canada (RY)
PFLT
PennantPark Floating Rate Capital Ltd
$7.01
-2.91%
FINANCIAL SERVICES · Cap: $716.35M
RY
Royal Bank of Canada
$203.30
-0.13%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 24669% more annual revenue ($67.15B vs $271.11M). RY leads profitability with a 33.9% profit margin vs 18.5%. PFLT appears more attractively valued with a PEG of 0.26. RY earns a higher WallStSmart Score of 63/100 (C+).
PFLT
Buy58
out of 100
Grade: C
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 77.1%
Attractively priced relative to earnings
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Areas to Watch
4.1% revenue growth
Smaller company, higher risk/reward
ROE of 4.9% — below average capital efficiency
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : PFLT
The strongest argument for PFLT centers on PEG Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 77.1%. PEG of 0.26 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 : PFLT
The primary concerns for PFLT are Revenue Growth, Market Cap, Return on Equity. Debt-to-equity of 1.55 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
PFLT profiles as a value 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.
PFLT generates stronger free cash flow (136M), providing more financial flexibility.
Bottom Line
RY scores higher overall (63/100 vs 58/100), backed by strong 33.9% margins. Both earn "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.
PennantPark Floating Rate Capital Ltd
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
PennantPark Floating Rate Capital Ltd (PFLT) is a specialized business development company that offers flexible financing solutions, primarily through floating rate loans to middle-market companies. The firm is dedicated to capital preservation while delivering consistent income and attractive risk-adjusted returns through a diversified portfolio of debt instruments. With an experienced management team and strong strategic partnerships, PFLT is strategically positioned to adapt to market changes and capitalize on growth opportunities in the middle-market lending sector, making it a compelling choice for institutional investors prioritizing stability and yield.
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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