PennyMac Finl Svcs Inc (PFSI)vsRoyal Bank of Canada (RY)
PFSI
PennyMac Finl Svcs Inc
$81.24
-0.36%
FINANCIAL SERVICES · Cap: $4.24B
RY
Royal Bank of Canada
$194.04
-0.48%
FINANCIAL SERVICES · Cap: $277.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 1880% more annual revenue ($65.72B vs $3.32B). RY leads profitability with a 33.7% profit margin vs 15.3%. RY appears more attractively valued with a PEG of 2.53. RY earns a higher WallStSmart Score of 70/100 (B-).
PFSI
Buy57
out of 100
Grade: C
RY
Strong Buy70
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
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 37.3B in free cash flow
Reasonable price relative to book value
16.1% revenue growth
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Revenue declined 16.6%
Negative free cash flow — burning cash
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : PFSI
The strongest argument for PFSI centers on P/E Ratio, Price/Book. Profitability is solid with margins at 15.3% and operating margin at 14.6%.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : PFSI
The primary concerns for PFSI are Piotroski F-Score, PEG Ratio, Revenue Growth. Debt-to-equity of 3.98 is elevated, increasing financial risk.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
PFSI profiles as a declining stock while RY is a growth play — different risk/reward profiles.
PFSI carries more volatility with a beta of 1.44 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (70/100 vs 57/100), backed by strong 33.7% margins and 16.1% revenue growth. Both earn "Strong 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.
PennyMac Finl Svcs Inc
FINANCIAL SERVICES · MORTGAGE FINANCE · USA
PennyMac Financial Services, Inc. is engaged in investment management and mortgage banking activities in the United States. The company is headquartered in Westlake Village, California.
Visit Website →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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