WallStSmart

Royal Bank of Canada (RY)vsShinhan Financial Group Co Ltd (SHG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shinhan Financial Group Co Ltd generates 25097% more annual revenue ($15.98T vs $63.42B). RY leads profitability with a 33.1% profit margin vs 32.0%. RY appears more attractively valued with a PEG of 2.30. SHG earns a higher WallStSmart Score of 68/100 (B-).

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

SHG

Strong Buy

68

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: -0.30

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$252.56B10/10

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
17.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

SHG4 strengths · Avg: 10.0/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
32.0%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
51.4%10/10

Strong operational efficiency at 51.4%

Areas to Watch

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

SHG3 concerns · Avg: 2.0/10
PEG RatioValuation
5.102/10

Expensive relative to growth rate

Free Cash FlowQuality
$-5.03T2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.302/10

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 33.1% and operating margin at 46.2%.

Bull Case : SHG

The strongest argument for SHG centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 32.0% and operating margin at 51.4%.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : SHG

The primary concerns for SHG are PEG Ratio, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

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.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

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

Bottom Line

RY scores higher overall (68/100 vs 68/100), backed by strong 33.1% margins. 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.

Shinhan Financial Group Co Ltd

FINANCIAL SERVICES · BANKS - REGIONAL · China

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company is headquartered in Seoul, South Korea.

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