WallStSmart

PennantPark Investment Corporation (PNNT)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 54849% more annual revenue ($63.42B vs $115.42M). RY leads profitability with a 33.1% profit margin vs 22.2%. PNNT appears more attractively valued with a PEG of 0.28. RY earns a higher WallStSmart Score of 68/100 (B-).

PNNT

Buy

60

out of 100

Grade: C

Growth: 2.0Profit: 7.0Value: 8.3Quality: 5.0

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PNNT5 strengths · Avg: 9.8/10
PEG RatioValuation
0.2810/10

Growing faster than its price suggests

P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
80.9%10/10

Strong operational efficiency at 80.9%

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

RY6 strengths · Avg: 9.3/10
Market CapQuality
$250.25B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

PNNT4 concerns · Avg: 2.5/10
Market CapQuality
$300.36M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Revenue GrowthGrowth
-20.3%2/10

Revenue declined 20.3%

EPS GrowthGrowth
-44.3%2/10

Earnings declined 44.3%

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PNNT

The strongest argument for PNNT centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 22.2% and operating margin at 80.9%. PEG of 0.28 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 : PNNT

The primary concerns for PNNT are Market Cap, Return on Equity, Revenue Growth.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

PNNT profiles as a declining 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 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 60/100), backed by strong 33.1% margins. 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.

PennantPark Investment Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

PennantPark Investment Corporation (PNNT) is a publicly traded business development company focused on providing tailored debt and equity financing solutions to middle-market companies. By emphasizing senior secured loans, subordinated debt, and equity investments, the firm targets sectors with significant growth potential while employing a disciplined approach to risk management. Leveraging a team of experienced investment professionals, PennantPark strategically identifies and pursues lucrative opportunities within the private credit market. The company's commitment to generating consistent dividend income and long-term capital appreciation positions it as an attractive option for institutional investors seeking to diversify their portfolios in a dynamic economic landscape.

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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