Rocket Companies Inc (RKT)vsRoyal Bank of Canada (RY)
RKT
Rocket Companies Inc
$13.18
-0.08%
FINANCIAL SERVICES · Cap: $39.36B
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 556% more annual revenue ($67.15B vs $10.24B). RY leads profitability with a 33.9% profit margin vs 4.6%. RKT appears more attractively valued with a PEG of 0.53. RY earns a higher WallStSmart Score of 63/100 (C+).
RKT
Buy61
out of 100
Grade: C+
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 91.9% year-over-year
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 27.1%
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
ROE of 2.0% — below average capital efficiency
4.6% margin — thin
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : RKT
The strongest argument for RKT centers on Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 91.9% demonstrates continued momentum. PEG of 0.53 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 : RKT
The primary concerns for RKT are Return on Equity, Profit Margin, Debt/Equity. Thin 4.6% margins leave little buffer for downturns.
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
RKT profiles as a hypergrowth stock while RY is a mature play — different risk/reward profiles.
RKT carries more volatility with a beta of 2.21 — expect wider price swings.
RKT is growing revenue faster at 91.9% — sustainability is the question.
RKT generates stronger free cash flow (-1.2B), providing more financial flexibility.
Bottom Line
RY scores higher overall (63/100 vs 61/100), 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.
Rocket Companies Inc
FINANCIAL SERVICES · MORTGAGE FINANCE · USA
Rocket Companies, Inc. is engaged in the technology-driven real estate, mortgage and e-commerce businesses in the United States and Canada. The company is headquartered in Detroit, Michigan.
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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