Royal Bank of Canada (RY)vsTFS Financial Corporation (TFSL)
RY
Royal Bank of Canada
$210.09
+1.76%
FINANCIAL SERVICES · Cap: $299.37B
TFSL
TFS Financial Corporation
$18.21
-1.46%
FINANCIAL SERVICES · Cap: $5.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 19517% more annual revenue ($65.72B vs $335.00M). RY leads profitability with a 33.7% profit margin vs 27.8%. RY appears more attractively valued with a PEG of 2.34. RY earns a higher WallStSmart Score of 67/100 (B-).
RY
Strong Buy67
out of 100
Grade: B-
TFSL
Buy56
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
Strong operational efficiency at 39.2%
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
ROE of 4.8% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bull Case : TFSL
The strongest argument for TFSL centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 27.8% and operating margin at 39.2%.
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 : TFSL
The primary concerns for TFSL are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 55.2x leaves little room for execution misses. Debt-to-equity of 2.67 is elevated, increasing financial risk.
Key Dynamics to Monitor
RY profiles as a growth stock while TFSL is a mature play — different risk/reward profiles.
RY carries more volatility with a beta of 0.93 — 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 56/100), 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.
TFS Financial Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
TFS Financial Corporation, provides retail banking services for consumers in the United States.
Visit Website →Compare with Other BANKS - DIVERSIFIED Stocks
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