Royal Bank of Canada (RY)vsVisa Inc. Class A (V)
RY
Royal Bank of Canada
$159.20
-0.70%
FINANCIAL SERVICES · Cap: $223.81B
V
Visa Inc. Class A
$301.62
+0.94%
FINANCIAL SERVICES · Cap: $581.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 53% more annual revenue ($63.42B vs $41.39B). V leads profitability with a 50.2% profit margin vs 33.1%. V appears more attractively valued with a PEG of 1.64. V earns a higher WallStSmart Score of 68/100 (B-).
RY
Strong Buy68
out of 100
Grade: B-
V
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+44.4%
Fair Value
$306.99
Current Price
$159.20
$147.79 discount
Margin of Safety
+18.2%
Fair Value
$368.92
Current Price
$301.62
$67.30 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 54 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 68.3%
Generating 6.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
Trading at 15.1x book value
Grey zone — moderate risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : V
The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Bear Case : V
The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
RY carries more volatility with a beta of 0.94 — expect wider price swings.
V is growing revenue faster at 14.6% — 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
RY scores higher overall (68/100 vs 68/100), backed by strong 33.1% margins. V offers better value entry with a 18.2% 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.
Visa Inc. Class A
FINANCIAL SERVICES · CREDIT SERVICES · USA
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.
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