Provident Financial Services Inc (PFS)vsRoyal Bank of Canada (RY)
PFS
Provident Financial Services Inc
$22.93
-0.56%
FINANCIAL SERVICES · Cap: $3.01B
RY
Royal Bank of Canada
$206.19
+1.42%
FINANCIAL SERVICES · Cap: $281.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 7409% more annual revenue ($67.15B vs $894.27M). PFS leads profitability with a 35.0% profit margin vs 33.9%. PFS appears more attractively valued with a PEG of 1.61. PFS earns a higher WallStSmart Score of 67/100 (B-).
PFS
Strong Buy67
out of 100
Grade: B-
RY
Strong Buy66
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 52.3%
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
Expensive relative to growth rate
3.8% revenue growth
Elevated debt levels
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 : PFS
The strongest argument for PFS centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 35.0% and operating margin at 52.3%.
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 : PFS
The primary concerns for PFS are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.65 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
PFS 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.
PFS generates stronger free cash flow (115M), providing more financial flexibility.
Bottom Line
PFS scores higher overall (67/100 vs 66/100), backed by strong 35.0% margins. 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.
Provident Financial Services Inc
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Provident Financial Services, Inc. is the banking holding company for Provident Bank offering various banking products and services to individuals, families and businesses in the United States. The company is headquartered in Jersey City, New Jersey.
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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