WallStSmart

Royal Bank of Canada (RY)vsWebster Financial Corporation (WBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 2325% more annual revenue ($67.15B vs $2.77B). WBS leads profitability with a 36.8% profit margin vs 33.9%. WBS appears more attractively valued with a PEG of 1.73. WBS earns a higher WallStSmart Score of 66/100 (B-).

RY

Buy

63

out of 100

Grade: C+

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

WBS

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: -0.74

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

WBS4 strengths · Avg: 9.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
36.8%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
50.6%10/10

Strong operational efficiency at 50.6%

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

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

WBS4 concerns · Avg: 3.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

EPS GrowthGrowth
2.8%4/10

2.8% earnings growth

Free Cash FlowQuality
$-141.11M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.742/10

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 : WBS

The strongest argument for WBS centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 36.8% and operating margin at 50.6%.

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 : WBS

The primary concerns for WBS are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

WBS carries more volatility with a beta of 1.00 — expect wider price swings.

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

WBS generates stronger free cash flow (-141M), providing more financial flexibility.

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

Bottom Line

WBS scores higher overall (66/100 vs 63/100), backed by strong 36.8% margins. 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.

Webster Financial Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Webster Financial Corporation is the banking holding company for Webster Bank, a National Association that provides a variety of banking, investment, and financial services to individuals, families, and businesses in the United States. The company is headquartered in Waterbury, Connecticut.

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