Royal Bank of Canada (RY)vsAT&T Inc (TBB)
RY
Royal Bank of Canada
$162.50
+0.24%
FINANCIAL SERVICES · Cap: $225.89B
TBB
AT&T Inc
$21.58
-0.05%
· Cap: $132.50B
Smart Verdict
WallStSmart Research — data-driven comparison
RY leads profitability with a 33.1% profit margin vs 0.0%. TBB trades at a lower P/E of 4.2x. RY earns a higher WallStSmart Score of 68/100 (B-).
RY
Strong Buy68
out of 100
Grade: B-
TBB
Avoid25
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.3%
Fair Value
$306.13
Current Price
$162.50
$143.63 discount
Intrinsic value data unavailable for TBB.
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
Attractively priced relative to earnings
Large-cap with strong market position
Generating 4.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
0.0% revenue growth
0.0% earnings growth
0.0% margin — thin
Operating margin of 0.0%
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 : TBB
The strongest argument for TBB centers on P/E Ratio, Market Cap, Free Cash Flow.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Bear Case : TBB
The primary concerns for TBB are Revenue Growth, EPS Growth, Profit Margin. Debt-to-equity of 1.57 is elevated, increasing financial risk.
Key Dynamics to Monitor
RY profiles as a mature stock while TBB is a value play — different risk/reward profiles.
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 25/100), backed by strong 33.1% margins. Both earn "Strong Buy" and "Avoid" 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.
AT&T Inc
· · USA
AT&T Inc. provides digital entertainment communications and services. The company is headquartered in Dallas, Texas.
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