WallStSmart

Royal Bank of Canada (RY)vsWisdomTree Inc. (WT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 10914% more annual revenue ($67.15B vs $609.68M). RY leads profitability with a 33.9% profit margin vs 13.3%. WT appears more attractively valued with a PEG of 1.54. WT earns a higher WallStSmart Score of 69/100 (B-).

RY

Buy

63

out of 100

Grade: C+

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

WT

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 6.5Value: 4.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.31

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

WT3 strengths · Avg: 10.0/10
Operating MarginProfitability
41.2%10/10

Strong operational efficiency at 41.2%

Revenue GrowthGrowth
57.3%10/10

Revenue surging 57.3% year-over-year

EPS GrowthGrowth
64.7%10/10

Earnings expanding 64.7% YoY

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

WT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Price/BookValuation
8.5x4/10

Trading at 8.5x book value

P/E RatioValuation
43.3x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-0.4%2/10

ROE of -0.4% — below average capital efficiency

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 : WT

The strongest argument for WT centers on Operating Margin, Revenue Growth, EPS Growth. Revenue growth of 57.3% 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 : WT

The primary concerns for WT are PEG Ratio, Price/Book, P/E Ratio. A P/E of 43.3x leaves little room for execution misses. Debt-to-equity of 2.58 is elevated, increasing financial risk.

Key Dynamics to Monitor

RY profiles as a mature stock while WT is a growth play — different risk/reward profiles.

WT carries more volatility with a beta of 1.20 — expect wider price swings.

WT is growing revenue faster at 57.3% — sustainability is the question.

WT generates stronger free cash flow (74M), providing more financial flexibility.

Bottom Line

WT scores higher overall (69/100 vs 63/100) and 57.3% 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.

WisdomTree Inc.

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

WisdomTree Inc. (WT) is a prominent asset management firm and innovator in the exchange-traded fund (ETF) space, founded in 2006. The company specializes in fundamentally weighted investment strategies, offering a diverse array of ETFs across various asset classes and global markets, all backed by proprietary research aimed at maximizing returns and managing risk. With a strong emphasis on transparency and cost efficiency, WisdomTree has established itself as a client-centric leader committed to adapting to the evolving landscape of investment management.

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