WallStSmart

Royal Bank of Canada (RY)vsServisFirst Bancshares Inc (SFBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 11375% more annual revenue ($67.15B vs $585.22M). SFBS leads profitability with a 54.8% profit margin vs 33.9%. SFBS trades at a lower P/E of 14.7x. SFBS earns a higher WallStSmart Score of 70/100 (B-).

RY

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

SFBS

Strong Buy

70

out of 100

Grade: B-

Growth: 10.0Profit: 8.0Value: 6.0Quality: 5.5
Piotroski: 6/9Altman Z: 0.12

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.4%10/10

Strong operational efficiency at 46.4%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

SFBS6 strengths · Avg: 9.3/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
54.8%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
70.0%10/10

Strong operational efficiency at 70.0%

Revenue GrowthGrowth
30.1%10/10

Revenue surging 30.1% year-over-year

P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
40.1%8/10

Earnings expanding 40.1% YoY

Areas to Watch

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

Expensive relative to growth rate

Free Cash FlowQuality
$-28.67B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.881/10

Elevated debt levels

SFBS1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.122/10

Distress zone — elevated risk

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 33.9% and operating margin at 46.4%.

Bull Case : SFBS

The strongest argument for SFBS centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 54.8% and operating margin at 70.0%. Revenue growth of 30.1% demonstrates continued momentum.

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 : SFBS

The primary concerns for SFBS are Altman Z-Score.

Key Dynamics to Monitor

RY profiles as a mature stock while SFBS is a growth play — different risk/reward profiles.

RY carries more volatility with a beta of 0.92 — expect wider price swings.

SFBS is growing revenue faster at 30.1% — sustainability is the question.

SFBS generates stronger free cash flow (160M), providing more financial flexibility.

Bottom Line

SFBS scores higher overall (70/100 vs 63/100), backed by strong 54.8% margins and 30.1% revenue growth. 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.

ServisFirst Bancshares Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

ServisFirst Bancshares, Inc. is the banking holding company for ServisFirst Bank providing various banking services to individual and corporate clients. The company is headquartered in Birmingham, Alabama.

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