WallStSmart

Royal Bank of Canada (RY)vsTrane Technologies plc (TT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 204% more annual revenue ($65.72B vs $21.60B). RY leads profitability with a 33.7% profit margin vs 13.4%. TT appears more attractively valued with a PEG of 2.01. RY earns a higher WallStSmart Score of 70/100 (B-).

RY

Strong Buy

70

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 4.3Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

TT

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 4.3Quality: 6.5
Piotroski: 7/9Altman Z: 2.77

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$277.29B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Free Cash FlowQuality
$20.82B10/10

Generating 20.8B in free cash flow

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

TT2 strengths · Avg: 9.5/10
Return on EquityProfitability
33.6%10/10

Every $100 of equity generates 34 in profit

Market CapQuality
$104.46B9/10

Large-cap with strong market position

Areas to Watch

RY3 concerns · Avg: 1.7/10
PEG RatioValuation
2.532/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.771/10

Elevated debt levels

TT4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

P/E RatioValuation
36.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.9x4/10

Trading at 11.9x book value

EPS GrowthGrowth
-2.1%2/10

Earnings declined 2.1%

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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.

Bull Case : TT

The strongest argument for TT centers on Return on Equity, Market Cap.

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 : TT

The primary concerns for TT are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

RY profiles as a growth stock while TT is a value play — different risk/reward profiles.

TT carries more volatility with a beta of 1.21 — 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 (70/100 vs 52/100), 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.

Trane Technologies plc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Trane Technologies plc is an American Irish domiciled diversified industrial manufacturing company. It is headquartered near Dublin, Ireland.

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