WallStSmart

Royal Bank of Canada (RY)vsSixth Street Specialty Lending Inc (TSLX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 14024% more annual revenue ($63.42B vs $449.06M). TSLX leads profitability with a 38.0% profit margin vs 33.1%. TSLX appears more attractively valued with a PEG of 1.28. 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

TSLX

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 8.0Value: 7.0Quality: 3.8
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$250.25B10/10

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
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

TSLX4 strengths · Avg: 10.0/10
P/E RatioValuation
10.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
38.0%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
77.0%10/10

Strong operational efficiency at 77.0%

Areas to Watch

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

Expensive relative to growth rate

TSLX4 concerns · Avg: 2.8/10
Market CapQuality
$1.80B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.083/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-12.5%2/10

Revenue declined 12.5%

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 : TSLX

The strongest argument for TSLX centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 38.0% and operating margin at 77.0%. PEG of 1.28 suggests the stock is reasonably priced for its growth.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : TSLX

The primary concerns for TSLX are Market Cap, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

RY profiles as a mature stock while TSLX is a declining play — different risk/reward profiles.

RY carries more volatility with a beta of 0.92 — expect wider price swings.

RY is growing revenue faster at 7.5% — 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 59/100), 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.

Sixth Street Specialty Lending Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Sixth Street Specialty Lending Inc. (TSLX) is a prominent provider of financing solutions, specializing in debt investments for private equity-backed middle market companies. With a robust investment strategy that emphasizes tailored capital solutions, TSLX aims to enhance returns while effectively managing risk. Leveraging the extensive industry expertise of its team and the resources of Sixth Street Partners, the firm offers innovative and flexible financing options designed to prioritize sustainable income and long-term shareholder value. As a key player in the specialty lending sector, TSLX is well-positioned to capitalize on growth opportunities within its target market.

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