WallStSmart

Royal Bank of Canada (RY)vsX Financial Class A (XYF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 760% more annual revenue ($65.72B vs $7.64B). RY leads profitability with a 33.7% profit margin vs 19.2%. XYF trades at a lower P/E of 1.3x. RY earns a higher WallStSmart Score of 67/100 (B-).

RY

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.50

XYF

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 6.7Quality: 8.5
Piotroski: 4/9Altman Z: 2.63

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RY6 strengths · Avg: 9.3/10
Market CapQuality
$299.37B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Free Cash FlowQuality
$20.82B10/10

Generating 20.8B in free cash flow

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

EPS GrowthGrowth
27.5%8/10

Earnings expanding 27.5% YoY

XYF5 strengths · Avg: 9.6/10
P/E RatioValuation
1.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
43.9%10/10

Strong operational efficiency at 43.9%

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.45B8/10

Generating 1.4B in free cash flow

Areas to Watch

RY3 concerns · Avg: 2.3/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.502/10

Distress zone — elevated risk

Debt/EquityHealth
2.771/10

Elevated debt levels

XYF3 concerns · Avg: 2.3/10
Market CapQuality
$191.04M3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-14.1%2/10

Revenue declined 14.1%

EPS GrowthGrowth
-81.9%2/10

Earnings declined 81.9%

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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.

Bull Case : XYF

The strongest argument for XYF centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 19.2% and operating margin at 43.9%.

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 : XYF

The primary concerns for XYF are Market Cap, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

RY profiles as a growth stock while XYF is a declining play — different risk/reward profiles.

RY carries more volatility with a beta of 0.93 — 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 (67/100 vs 54/100), backed by strong 33.7% margins and 16.1% 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.

X Financial Class A

FINANCIAL SERVICES · CREDIT SERVICES · China

X Financial offers personal finance services in the People's Republic of China. The company is headquartered in Shenzhen, the People's Republic of China.

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