Royal Bank of Canada (RY)vsThe TJX Companies Inc (TJX)
RY
Royal Bank of Canada
$162.50
+0.24%
FINANCIAL SERVICES · Cap: $225.89B
TJX
The TJX Companies Inc
$159.74
+0.86%
CONSUMER CYCLICAL · Cap: $177.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 5% more annual revenue ($63.42B vs $60.37B). RY leads profitability with a 33.1% profit margin vs 9.1%. RY appears more attractively valued with a PEG of 2.41. RY earns a higher WallStSmart Score of 68/100 (B-).
RY
Strong Buy68
out of 100
Grade: B-
TJX
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.3%
Fair Value
$306.13
Current Price
$162.50
$143.63 discount
Margin of Safety
+30.8%
Fair Value
$227.92
Current Price
$159.74
$68.18 discount
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
Every $100 of equity generates 59 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 28.3% YoY
Generating 2.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 17.6x book value
Expensive relative to growth rate
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 : TJX
The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Bear Case : TJX
The primary concerns for TJX are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
RY profiles as a mature stock while TJX is a value play — different risk/reward profiles.
RY carries more volatility with a beta of 0.94 — expect wider price swings.
TJX is growing revenue faster at 8.5% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 56/100), backed by strong 33.1% margins. TJX offers better value entry with a 30.8% margin of safety. 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.
The TJX Companies Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.
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