WallStSmart

Royal Bank of Canada (RY)vsUpstart Holdings Inc (UPST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 5122% more annual revenue ($67.15B vs $1.29B). RY leads profitability with a 33.9% profit margin vs 4.7%. RY trades at a lower P/E of 18.4x. RY earns a higher WallStSmart Score of 63/100 (C+).

RY

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

UPST

Buy

53

out of 100

Grade: C-

Growth: 8.7Profit: 4.5Value: 4.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.80

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY4 strengths · Avg: 9.5/10
Market CapQuality
$291.55B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.9%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.4%10/10

Strong operational efficiency at 46.4%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

UPST2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
42.3%10/10

Revenue surging 42.3% year-over-year

EPS GrowthGrowth
211.2%10/10

Earnings expanding 211.2% YoY

Areas to Watch

RY4 concerns · Avg: 2.3/10
PEG RatioValuation
2.354/10

Expensive relative to growth rate

Free Cash FlowQuality
$-28.67B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.881/10

Elevated debt levels

UPST4 concerns · Avg: 2.5/10
Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

P/E RatioValuation
51.8x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-138.82M2/10

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 33.9% and operating margin at 46.4%.

Bull Case : UPST

The strongest argument for UPST centers on Revenue Growth, EPS Growth. Revenue growth of 42.3% demonstrates continued momentum.

Bear Case : RY

The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.

Bear Case : UPST

The primary concerns for UPST are Return on Equity, Profit Margin, P/E Ratio. A P/E of 51.8x leaves little room for execution misses. Debt-to-equity of 2.54 is elevated, increasing financial risk.

Key Dynamics to Monitor

RY profiles as a mature stock while UPST is a hypergrowth play — different risk/reward profiles.

UPST carries more volatility with a beta of 2.17 — expect wider price swings.

UPST is growing revenue faster at 42.3% — sustainability is the question.

UPST generates stronger free cash flow (-139M), providing more financial flexibility.

Bottom Line

RY scores higher overall (63/100 vs 53/100), backed by strong 33.9% margins. Both earn "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.

Upstart Holdings Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

Upstart Holdings, Inc. operates a cloud-based artificial intelligence (AI) lending platform. The company is headquartered in San Mateo, California.

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