Royal Bank of Canada (RY)vsCharles Schwab Corp (SCHW)
RY
Royal Bank of Canada
$162.35
-1.14%
FINANCIAL SERVICES · Cap: $229.39B
SCHW
Charles Schwab Corp
$93.99
+0.76%
FINANCIAL SERVICES · Cap: $166.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 165% more annual revenue ($63.42B vs $23.92B). SCHW leads profitability with a 37.0% profit margin vs 33.1%. SCHW appears more attractively valued with a PEG of 1.10. SCHW earns a higher WallStSmart Score of 75/100 (B+).
RY
Strong Buy68
out of 100
Grade: B-
SCHW
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.9%
Fair Value
$304.40
Current Price
$162.35
$142.05 discount
Margin of Safety
+57.1%
Fair Value
$217.62
Current Price
$93.99
$123.63 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
18.9% revenue growth
Earnings expanding 41.1% YoY
Areas to Watch
Expensive relative to growth rate
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 33.1% and operating margin at 46.2%.
Bull Case : SCHW
The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% demonstrates continued momentum.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Bear Case : SCHW
The primary concerns for SCHW are Free Cash Flow.
Key Dynamics to Monitor
RY profiles as a mature stock while SCHW is a growth play — different risk/reward profiles.
RY carries more volatility with a beta of 0.94 — expect wider price swings.
SCHW is growing revenue faster at 18.9% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
SCHW scores higher overall (75/100 vs 68/100), backed by strong 37.0% margins and 18.9% revenue growth. RY offers better value entry with a 43.9% margin of safety. Both earn "Strong Buy" and "Strong 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.
Charles Schwab Corp
FINANCIAL SERVICES · CAPITAL MARKETS · USA
The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.
Visit Website →Compare with Other BANKS - DIVERSIFIED Stocks
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