Royal Bank of Canada (RY)vsShopify Inc (SHOP)
RY
Royal Bank of Canada
$162.50
+0.24%
FINANCIAL SERVICES · Cap: $225.89B
SHOP
Shopify Inc
$118.42
+1.95%
TECHNOLOGY · Cap: $151.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 449% more annual revenue ($63.42B vs $11.56B). RY leads profitability with a 33.1% profit margin vs 10.6%. RY appears more attractively valued with a PEG of 2.41. RY earns a higher WallStSmart Score of 68/100 (B-).
RY
Strong Buy68
out of 100
Grade: B-
SHOP
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.3%
Fair Value
$306.13
Current Price
$162.50
$143.63 discount
Margin of Safety
-1729.9%
Fair Value
$6.39
Current Price
$118.42
$112.03 premium
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
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
Trading at 11.5x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x leaves little room for execution misses.
Key Dynamics to Monitor
RY profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.90 — expect wider price swings.
SHOP is growing revenue faster at 30.6% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 48/100), backed by strong 33.1% 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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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