WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 5499% more annual revenue ($65.72B vs $1.17B). RY leads profitability with a 33.7% profit margin vs 4.2%. RY trades at a lower P/E of 18.1x. 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

UPST

Hold

50

out of 100

Grade: D+

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

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
$37.30B10/10

Generating 37.3B 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

UPST2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
44.6%10/10

Revenue surging 44.6% year-over-year

EPS GrowthGrowth
209.1%10/10

Earnings expanding 209.1% YoY

Areas to Watch

RY1 concerns · Avg: 2.0/10
PEG RatioValuation
2.532/10

Expensive relative to growth rate

UPST4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Profit MarginProfitability
4.2%3/10

4.2% margin — thin

Operating MarginProfitability
0.9%3/10

Operating margin of 0.9%

P/E RatioValuation
74.4x2/10

Premium valuation, high expectations priced in

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 : UPST

The strongest argument for UPST centers on Revenue Growth, EPS Growth. Revenue growth of 44.6% demonstrates continued momentum.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Bear Case : UPST

The primary concerns for UPST are Return on Equity, Profit Margin, Operating Margin. A P/E of 74.4x leaves little room for execution misses. Debt-to-equity of 2.70 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

UPST carries more volatility with a beta of 2.28 — expect wider price swings.

UPST is growing revenue faster at 44.6% — sustainability is the question.

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

Bottom Line

RY scores higher overall (70/100 vs 50/100), backed by strong 33.7% margins and 16.1% revenue growth. Both earn "Strong Buy" and "Hold" 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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