WallStSmart

Royal Bank of Canada (RY)vsUBS Group AG (UBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 28% more annual revenue ($63.42B vs $49.60B). RY leads profitability with a 33.1% profit margin vs 15.7%. UBS appears more attractively valued with a PEG of 0.45. UBS earns a higher WallStSmart Score of 77/100 (B+).

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 9.5Value: 10.0Quality: 5.0

UBS

Strong Buy

77

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 10.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RYUndervalued (+44.4%)

Margin of Safety

+44.4%

Fair Value

$306.99

Current Price

$159.20

$147.79 discount

UndervaluedFair: $306.99Overvalued
UBSUndervalued (+61.7%)

Margin of Safety

+61.7%

Fair Value

$110.45

Current Price

$36.73

$73.72 discount

UndervaluedFair: $110.45Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$223.81B10/10

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
15.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

UBS6 strengths · Avg: 9.5/10
PEG RatioValuation
0.4510/10

Growing faster than its price suggests

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
54.6%10/10

Strong operational efficiency at 54.6%

EPS GrowthGrowth
58.0%10/10

Earnings expanding 58.0% YoY

Market CapQuality
$116.05B9/10

Large-cap with strong market position

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Areas to Watch

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

UBS1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-11.34B2/10

Negative free cash flow — burning cash

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 : UBS

The strongest argument for UBS centers on PEG Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 15.7% and operating margin at 54.6%. Revenue growth of 12.4% demonstrates continued momentum.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : UBS

The primary concerns for UBS are Free Cash Flow.

Key Dynamics to Monitor

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

UBS is growing revenue faster at 12.4% — sustainability is the question.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

UBS scores higher overall (77/100 vs 68/100), backed by strong 15.7% margins and 12.4% revenue growth. RY offers better value entry with a 44.4% margin of safety. Both earn "Strong Buy" and "Strong 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.

UBS Group AG

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

UBS Group AG, provides advice and financial solutions to private, institutional and corporate clients worldwide. The company is headquartered in Zurich, Switzerland.

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