Royal Bank of Canada (RY)vsSaratoga Investment Corp (SAR)
RY
Royal Bank of Canada
$194.67
-0.51%
FINANCIAL SERVICES · Cap: $270.89B
SAR
Saratoga Investment Corp
$16.61
+0.79%
FINANCIAL SERVICES · Cap: $268.87M
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 53979% more annual revenue ($67.15B vs $124.17M). RY leads profitability with a 33.9% profit margin vs 12.7%. SAR trades at a lower P/E of 17.1x. RY earns a higher WallStSmart Score of 66/100 (B-).
RY
Strong Buy66
out of 100
Grade: B-
SAR
Hold47
out of 100
Grade: D+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Reasonable price relative to book value
Strong operational efficiency at 69.0%
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Smaller company, higher risk/reward
Elevated debt levels
Revenue declined 4.8%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : SAR
The strongest argument for SAR centers on Price/Book, Operating Margin, P/E Ratio.
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.
Bear Case : SAR
The primary concerns for SAR are Market Cap, Debt/Equity, Revenue Growth. Debt-to-equity of 1.56 is elevated, increasing financial risk.
Key Dynamics to Monitor
RY profiles as a mature stock while SAR is a declining 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.
SAR generates stronger free cash flow (-26M), providing more financial flexibility.
Bottom Line
RY scores higher overall (66/100 vs 47/100), backed by strong 33.9% margins. Both earn "Strong Buy" and "Hold" 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.
Saratoga Investment Corp
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
Saratoga Investment Corp (SAR) is a publicly traded business development company specializing in providing flexible debt and equity capital to middle-market enterprises across various sectors, including healthcare, technology, and consumer products. The firm employs a disciplined investment strategy that prioritizes comprehensive due diligence and risk management to safeguard capital while striving for optimal shareholder returns. With a robust portfolio management approach and a history of consistent dividend payouts, Saratoga offers institutional investors a compelling opportunity to enhance their exposure to alternative investments while benefiting from the growth potential inherent in the middle-market segment.
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