RLI Corp (RLI)vsRoyal Bank of Canada (RY)
RLI
RLI Corp
$68.35
-1.97%
FINANCIAL SERVICES · Cap: $5.93B
RY
Royal Bank of Canada
$201.16
-1.28%
FINANCIAL SERVICES · Cap: $281.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 3358% more annual revenue ($67.15B vs $1.94B). RY leads profitability with a 33.9% profit margin vs 20.3%. RLI appears more attractively valued with a PEG of 1.73. RY earns a higher WallStSmart Score of 68/100 (B-).
RLI
Buy58
out of 100
Grade: C
RY
Strong Buy68
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 22 in profit
Keeps 20 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Strong operational efficiency at 22.5%
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
Revenue declined 6.3%
Earnings declined 34.8%
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 : RLI
The strongest argument for RLI centers on Return on Equity, Profit Margin, Debt/Equity. Profitability is solid with margins at 20.3% and operating margin at 22.5%.
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 : RLI
The primary concerns for RLI are PEG Ratio, Revenue Growth, EPS 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
RLI profiles as a declining stock while RY is a mature play — different risk/reward profiles.
RY carries more volatility with a beta of 0.91 — expect wider price swings.
RY is growing revenue faster at 8.9% — sustainability is the question.
RLI generates stronger free cash flow (192M), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 58/100), backed by strong 33.9% 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.
RLI Corp
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
RLI Corp. The company is headquartered in Peoria, Illinois.
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.
Compare with Other INSURANCE - PROPERTY & CASUALTY Stocks
Want to dig deeper into these stocks?