Royal Bank of Canada (RY)vsState Street Corp (STT)
RY
Royal Bank of Canada
$210.09
+1.76%
FINANCIAL SERVICES · Cap: $299.37B
STT
State Street Corp
$176.04
-3.58%
FINANCIAL SERVICES · Cap: $50.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 337% more annual revenue ($65.72B vs $15.02B). RY leads profitability with a 33.7% profit margin vs 23.0%. STT appears more attractively valued with a PEG of 0.78. RY earns a higher WallStSmart Score of 67/100 (B-).
RY
Strong Buy67
out of 100
Grade: B-
STT
Buy62
out of 100
Grade: C+
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 45.3%
Generating 20.8B in free cash flow
16.1% revenue growth
Earnings expanding 27.5% YoY
Large-cap with strong market position
Keeps 23 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 27.8%
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Elevated debt levels
Revenue declined 2.8%
Earnings declined 24.1%
Negative free cash flow — burning cash
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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bull Case : STT
The strongest argument for STT centers on Market Cap, Profit Margin, PEG Ratio. Profitability is solid with margins at 23.0% and operating margin at 27.8%. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Bear Case : STT
The primary concerns for STT are Debt/Equity, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
RY profiles as a growth stock while STT is a declining play — different risk/reward profiles.
STT carries more volatility with a beta of 1.43 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Bottom Line
RY scores higher overall (67/100 vs 62/100), backed by strong 33.7% margins and 16.1% 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.
State Street Corp
FINANCIAL SERVICES · ASSET MANAGEMENT · USA
State Street Corporation is an American financial services and bank holding company headquartered at One Lincoln Street in Boston with operations worldwide.
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