Royal Bank of Canada (RY)vsXp Inc (XP)
RY
Royal Bank of Canada
$194.04
-0.48%
FINANCIAL SERVICES · Cap: $277.29B
XP
Xp Inc
$15.99
-1.92%
FINANCIAL SERVICES · Cap: $7.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 262% more annual revenue ($65.72B vs $18.18B). RY leads profitability with a 33.7% profit margin vs 28.8%. XP trades at a lower P/E of 7.8x. XP earns a higher WallStSmart Score of 70/100 (B).
RY
Strong Buy70
out of 100
Grade: B-
XP
Strong Buy70
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 45.3%
Generating 20.8B in free cash flow
Reasonable price relative to book value
16.1% revenue growth
Attractively priced relative to earnings
Every $100 of equity generates 21 in profit
Keeps 29 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 29.9%
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Weak financial health signals
Elevated debt levels
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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bull Case : XP
The strongest argument for XP centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 28.8% and operating margin at 29.9%.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Bear Case : XP
The primary concerns for XP are Piotroski F-Score, Debt/Equity. Debt-to-equity of 3.67 is elevated, increasing financial risk.
Key Dynamics to Monitor
RY profiles as a growth stock while XP is a mature play — different risk/reward profiles.
XP carries more volatility with a beta of 1.12 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Bottom Line
RY scores higher overall (70/100 vs 70/100), backed by strong 33.7% margins and 16.1% revenue growth. 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.
Xp Inc
FINANCIAL SERVICES · CAPITAL MARKETS · USA
XP Inc. offers financial products and services in Brazil. The company is headquartered in So Paulo, Brazil.
Visit Website →Compare with Other BANKS - DIVERSIFIED Stocks
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