WallStSmart

Royal Bank of Canada (RY)vsWaFd, Inc. (WAFDP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 8723% more annual revenue ($67.15B vs $761.06M). RY leads profitability with a 33.9% profit margin vs 33.7%. WAFDP trades at a lower P/E of 6.0x. 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

WAFDP

Hold

45

out of 100

Grade: D

Growth: 8.0Profit: 7.5Value: 6.7Quality: 5.5
Piotroski: 5/9Altman Z: -0.61

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

WAFDP4 strengths · Avg: 10.0/10
P/E RatioValuation
6.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
46.1%10/10

Strong operational efficiency at 46.1%

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

WAFDP2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.103/10

Elevated debt levels

Altman Z-ScoreHealth
-0.612/10

Distress zone — elevated risk

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 : WAFDP

The strongest argument for WAFDP centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 33.7% and operating margin at 46.1%.

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 : WAFDP

The primary concerns for WAFDP are Debt/Equity, Altman Z-Score.

Key Dynamics to Monitor

RY carries more volatility with a beta of 0.92 — expect wider price swings.

RY is growing revenue faster at 8.9% — sustainability is the question.

WAFDP generates stronger free cash flow (63M), providing more financial flexibility.

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

Bottom Line

RY scores higher overall (63/100 vs 45/100), backed by strong 33.9% margins. Both earn "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.

WaFd, Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

WaFd, Inc. (WAFDP), headquartered in Seattle, Washington, operates as a multifaceted financial institution offering a diverse range of services, including retail and commercial banking, mortgage banking, and wealth management. Catering to individuals, businesses, and communities throughout the Western United States, WaFd harnesses cutting-edge technology and in-depth market insights to deliver superior customer experiences. With a strong financial foundation characterized by resilience through economic cycles and a dedication to prudent risk management, WaFd is committed to fostering sustainable growth and community engagement, establishing itself as a dependable partner in the region’s economic landscape.

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