WallStSmart

360 Finance Inc (QFIN)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 300% more annual revenue ($67.15B vs $16.77B). RY leads profitability with a 33.9% profit margin vs 22.3%. QFIN trades at a lower P/E of 2.0x. RY earns a higher WallStSmart Score of 63/100 (C+).

QFIN

Buy

62

out of 100

Grade: C+

Growth: 2.0Profit: 8.0Value: 6.7Quality: 7.0
Piotroski: 3/9Altman Z: 1.47

RY

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QFIN6 strengths · Avg: 9.5/10
P/E RatioValuation
2.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.5%10/10

Strong operational efficiency at 32.5%

Return on EquityProfitability
21.4%9/10

Every $100 of equity generates 21 in profit

Profit MarginProfitability
22.3%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.4%10/10

Strong operational efficiency at 46.4%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

QFIN4 concerns · Avg: 2.5/10
Market CapQuality
$1.05B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-31.6%2/10

Revenue declined 31.6%

EPS GrowthGrowth
-74.3%2/10

Earnings declined 74.3%

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

Expensive relative to growth rate

Free Cash FlowQuality
$-28.67B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.881/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : QFIN

The strongest argument for QFIN centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 22.3% and operating margin at 32.5%.

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 : QFIN

The primary concerns for QFIN are Market Cap, Piotroski F-Score, Revenue Growth.

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

QFIN 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 8.9% — sustainability is the question.

QFIN generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

RY scores higher overall (63/100 vs 62/100), 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.

360 Finance Inc

FINANCIAL SERVICES · CREDIT SERVICES · China

360 DigiTech, Inc., operates a digital consumer finance platform under the 360 Jietiao brand in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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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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