Royal Bank of Canada (RY)vsWestern Alliance Bancorporation (WAL)
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
WAL
Western Alliance Bancorporation
$79.29
+0.01%
FINANCIAL SERVICES · Cap: $8.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 1826% more annual revenue ($67.15B vs $3.49B). RY leads profitability with a 33.9% profit margin vs 28.2%. WAL appears more attractively valued with a PEG of 1.47. WAL earns a higher WallStSmart Score of 75/100 (B+).
RY
Buy63
out of 100
Grade: C+
WAL
Strong Buy75
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 39.4%
Keeps 28 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated 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 33.9% and operating margin at 46.4%.
Bull Case : WAL
The strongest argument for WAL centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.2% and operating margin at 39.4%. Revenue growth of 13.6% 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 : WAL
The primary concerns for WAL are Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
WAL carries more volatility with a beta of 1.32 — expect wider price swings.
WAL is growing revenue faster at 13.6% — sustainability is the question.
WAL generates stronger free cash flow (-375M), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WAL scores higher overall (75/100 vs 63/100), backed by strong 28.2% margins and 13.6% revenue growth. Both earn "Strong 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.
Western Alliance Bancorporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
Western Alliance Bancorporation is the banking holding company for Western Alliance Bank offering various banking products and related services primarily in Arizona, California and Nevada. The company is headquartered in Phoenix, Arizona.
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