Royal Bank of Canada (RY)vs1st Source Corporation (SRCE)
RY
Royal Bank of Canada
$199.50
+0.03%
FINANCIAL SERVICES · Cap: $281.45B
SRCE
1st Source Corporation
$86.09
+0.80%
FINANCIAL SERVICES · Cap: $2.06B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 15080% more annual revenue ($67.15B vs $442.37M). SRCE leads profitability with a 38.6% profit margin vs 33.9%. SRCE appears more attractively valued with a PEG of 1.37. SRCE earns a higher WallStSmart Score of 75/100 (B).
RY
Strong Buy66
out of 100
Grade: B-
SRCE
Strong Buy75
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 54.1%
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
16.0% revenue growth
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Distress zone — elevated risk
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 33.9% and operating margin at 46.4%.
Bull Case : SRCE
The strongest argument for SRCE centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 38.6% and operating margin at 54.1%. Revenue growth of 16.0% 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 : SRCE
The primary concerns for SRCE are Altman Z-Score.
Key Dynamics to Monitor
RY profiles as a mature stock while SRCE is a growth play — different risk/reward profiles.
RY carries more volatility with a beta of 0.92 — expect wider price swings.
SRCE is growing revenue faster at 16.0% — sustainability is the question.
SRCE generates stronger free cash flow (50M), providing more financial flexibility.
Bottom Line
SRCE scores higher overall (75/100 vs 66/100), backed by strong 38.6% margins and 16.0% 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.
1st Source Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
1st Source Corporation is the holding company of 1st Source Bank providing commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and commercial clients. The company is headquartered in South Bend, Indiana.
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