WallStSmart

Royal Bank of Canada (RY)vsBanco Santander SA ADR (SAN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 35% more annual revenue ($63.42B vs $46.84B). RY leads profitability with a 33.1% profit margin vs 30.1%. RY appears more attractively valued with a PEG of 2.41. RY earns a higher WallStSmart Score of 68/100 (B-).

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 9.5Value: 10.0Quality: 5.0

SAN

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 7.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RYUndervalued (+44.4%)

Margin of Safety

+44.4%

Fair Value

$306.99

Current Price

$159.20

$147.79 discount

UndervaluedFair: $306.99Overvalued
SANUndervalued (+72.2%)

Margin of Safety

+72.2%

Fair Value

$44.93

Current Price

$10.53

$34.40 discount

UndervaluedFair: $44.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$223.81B10/10

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
15.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

SAN6 strengths · Avg: 9.5/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.1%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
43.7%10/10

Strong operational efficiency at 43.7%

Market CapQuality
$159.67B9/10

Large-cap with strong market position

EPS GrowthGrowth
25.3%8/10

Earnings expanding 25.3% YoY

Areas to Watch

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

SAN4 concerns · Avg: 1.8/10
PEG RatioValuation
2.612/10

Expensive relative to growth rate

Revenue GrowthGrowth
-6.4%2/10

Revenue declined 6.4%

Altman Z-ScoreHealth
0.382/10

Distress zone — elevated risk

Debt/EquityHealth
4.471/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : SAN

The strongest argument for SAN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.1% and operating margin at 43.7%.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : SAN

The primary concerns for SAN are PEG Ratio, Revenue Growth, Altman Z-Score. Debt-to-equity of 4.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

RY profiles as a mature stock while SAN is a declining play — different risk/reward profiles.

RY carries more volatility with a beta of 0.94 — expect wider price swings.

RY is growing revenue faster at 7.5% — sustainability is the question.

Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RY scores higher overall (68/100 vs 63/100), backed by strong 33.1% margins. SAN offers better value entry with a 72.2% margin of safety. 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.

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.

Banco Santander SA ADR

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Banco Santander, SA, offers various commercial and retail banking products and services to individuals, small and medium-sized companies and large companies worldwide. The company is headquartered in Madrid, Spain.

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