WallStSmart

Royal Bank of Canada (RY)vsTowne Bank (TOWN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 7130% more annual revenue ($63.42B vs $877.21M). RY leads profitability with a 33.1% profit margin vs 19.0%. TOWN trades at a lower P/E of 15.7x. RY earns a higher WallStSmart Score of 68/100 (B-).

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

TOWN

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 6.0Quality: 5.3
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$252.56B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
17.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

TOWN5 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
35.8%10/10

Strong operational efficiency at 35.8%

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.7x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
29.8%8/10

Revenue surging 29.8% year-over-year

Areas to Watch

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

TOWN3 concerns · Avg: 2.7/10
Return on EquityProfitability
6.6%3/10

ROE of 6.6% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-32.8%2/10

Earnings declined 32.8%

Comparative Analysis Report

WallStSmart Research

Bull 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 : TOWN

The strongest argument for TOWN centers on Price/Book, Operating Margin, Debt/Equity. Profitability is solid with margins at 19.0% and operating margin at 35.8%. Revenue growth of 29.8% demonstrates continued momentum.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : TOWN

The primary concerns for TOWN are Return on Equity, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

RY profiles as a mature stock while TOWN is a growth play — different risk/reward profiles.

RY carries more volatility with a beta of 0.94 — expect wider price swings.

TOWN is growing revenue faster at 29.8% — 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 58/100), 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.

Towne Bank

FINANCIAL SERVICES · BANKS - REGIONAL · USA

TowneBank offers retail and business banking services for individuals, professionals, and business companies. The company is headquartered in Portsmouth, Virginia.

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