WallStSmart

Royal Bank of Canada (RY)vsSuper Micro Computer Inc (SMCI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 88% more annual revenue ($63.42B vs $33.70B). RY leads profitability with a 33.1% profit margin vs 3.7%. SMCI appears more attractively valued with a PEG of 0.91. SMCI earns a higher WallStSmart Score of 71/100 (B).

RY

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.3Quality: 5.0

SMCI

Strong Buy

71

out of 100

Grade: B

Growth: 10.0Profit: 6.0Value: 6.3Quality: 7.0
Piotroski: 3/9Altman Z: 3.55

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY5 strengths · Avg: 9.6/10
Market CapQuality
$262.99B10/10

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

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

SMCI4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
122.7%10/10

Revenue surging 122.7% year-over-year

EPS GrowthGrowth
326.0%10/10

Earnings expanding 326.0% YoY

Altman Z-ScoreHealth
3.5510/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.918/10

Growing faster than its price suggests

Areas to Watch

RY1 concerns · Avg: 2.0/10
PEG RatioValuation
2.532/10

Expensive relative to growth rate

SMCI3 concerns · Avg: 2.7/10
Profit MarginProfitability
3.7%3/10

3.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-6.70B2/10

Negative free cash flow — burning cash

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 : SMCI

The strongest argument for SMCI centers on Revenue Growth, EPS Growth, Altman Z-Score. Revenue growth of 122.7% demonstrates continued momentum. PEG of 0.91 suggests the stock is reasonably priced for its growth.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : SMCI

The primary concerns for SMCI are Profit Margin, Piotroski F-Score, Free Cash Flow. Thin 3.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

RY profiles as a mature stock while SMCI is a hypergrowth play — different risk/reward profiles.

SMCI carries more volatility with a beta of 1.68 — expect wider price swings.

SMCI is growing revenue faster at 122.7% — sustainability is the question.

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

Bottom Line

SMCI scores higher overall (71/100 vs 66/100) and 122.7% revenue growth. 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.

Super Micro Computer Inc

TECHNOLOGY · COMPUTER HARDWARE · USA

Super Micro Computer, Inc. develops and manufactures high-performance server and storage solutions based on an open, modular architecture. The company is headquartered in San Jose, California.

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