Royal Bank of Canada (RY)vsXp Inc (XP)
RY
Royal Bank of Canada
$181.68
+0.18%
FINANCIAL SERVICES · Cap: $252.56B
XP
Xp Inc
$19.17
+2.02%
FINANCIAL SERVICES · Cap: $9.71B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 257% more annual revenue ($63.42B vs $17.77B). RY leads profitability with a 33.1% profit margin vs 29.1%. XP trades at a lower P/E of 9.5x. XP earns a higher WallStSmart Score of 74/100 (B).
RY
Strong Buy68
out of 100
Grade: B-
XP
Strong Buy74
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Attractively priced relative to earnings
Strong operational efficiency at 31.5%
Every $100 of equity generates 24 in profit
Keeps 29 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
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 33.1% and operating margin at 46.2%.
Bull Case : XP
The strongest argument for XP centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 29.1% and operating margin at 31.5%. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Bear Case : XP
The primary concerns for XP are Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
XP carries more volatility with a beta of 1.19 — expect wider price swings.
XP is growing revenue faster at 13.3% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
XP scores higher overall (74/100 vs 68/100), backed by strong 29.1% margins and 13.3% 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.
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