Royal Bank of Canada (RY)vsToyota Motor Corporation ADR (TM)
RY
Royal Bank of Canada
$162.50
+0.24%
FINANCIAL SERVICES · Cap: $225.89B
TM
Toyota Motor Corporation ADR
$210.93
+0.55%
CONSUMER CYCLICAL · Cap: $273.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Toyota Motor Corporation ADR generates 79445% more annual revenue ($50.45T vs $63.42B). RY leads profitability with a 33.1% profit margin vs 7.3%. TM appears more attractively valued with a PEG of 1.54. RY earns a higher WallStSmart Score of 68/100 (B-).
RY
Strong Buy68
out of 100
Grade: B-
TM
Buy53
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
-96.6%
Fair Value
$121.38
Current Price
$210.93
$89.55 premium
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
Mega-cap, among the largest globally
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
Trading at 11.2x book value
7.3% margin — thin
Earnings declined 42.3%
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 : TM
The strongest argument for TM centers on Market Cap, P/E Ratio.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Bear Case : TM
The primary concerns for TM are PEG Ratio, Price/Book, Profit Margin.
Key Dynamics to Monitor
RY profiles as a mature stock while TM is a value play — different risk/reward profiles.
RY carries more volatility with a beta of 0.94 — expect wider price swings.
TM is growing revenue faster at 8.6% — 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 53/100), backed by strong 33.1% margins. 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.
Toyota Motor Corporation ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.
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