Head to Head Review: Royal Bank of Canada (RY) versus Its Rivals
Royal Bank of Canada (NYSE: RY) is one of 310 public companies in the “Banks” industry, but how does it compare to its peers? We will compare Royal Bank of Canada to similar businesses based on the strength of its earnings, valuation, institutional ownership, analyst recommendations, dividends, profitability and risk.
Royal Bank of Canada pays an annual dividend of $2.87 per share and has a dividend yield of 3.4%. Royal Bank of Canada pays out 47.4% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.9% of their earnings in the form of a dividend.
Earnings and Valuation
This table compares Royal Bank of Canada and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Royal Bank of Canada||$40.37 billion||$8.74 billion||13.81|
|Royal Bank of Canada Competitors||$5.50 billion||$827.87 million||383.43|
Royal Bank of Canada has higher revenue and earnings than its peers. Royal Bank of Canada is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Royal Bank of Canada and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Royal Bank of Canada||22.62%||17.01%||0.95%|
|Royal Bank of Canada Competitors||18.61%||8.21%||0.93%|
Volatility & Risk
Royal Bank of Canada has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Royal Bank of Canada’s peers have a beta of 0.78, suggesting that their average stock price is 22% less volatile than the S&P 500.
Insider and Institutional Ownership
40.6% of Royal Bank of Canada shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are owned by institutional investors. 10.4% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of recent recommendations for Royal Bank of Canada and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Royal Bank of Canada||1||6||1||0||2.00|
|Royal Bank of Canada Competitors||2259||8691||8714||359||2.36|
Royal Bank of Canada currently has a consensus price target of $100.50, suggesting a potential upside of 20.07%. As a group, “Banks” companies have a potential downside of 8.87%. Given Royal Bank of Canada’s higher probable upside, analysts clearly believe Royal Bank of Canada is more favorable than its peers.
Royal Bank of Canada beats its peers on 8 of the 15 factors compared.
About Royal Bank of Canada
Royal Bank of Canada (RBC), is a diversified financial services company. The Company provides personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. The Company serves personal, business, public sector and institutional clients in Canada, the United States and approximately 40 other countries. The Company’s business segments include Personal and Commercial Banking, Wealth Management, Insurance, Investor and Treasury Services, Capital Markets. The Company, through its segments, serves various lines of businesses, which include Personal Financial Services, Business Financial Services, Cards and Payment Solutions (Canadian Banking), Caribbean and United States Banking, Canadian Wealth Management, United States and International Wealth Management, Global Asset Management, Canadian Insurance, International Insurance, Corporate and Investment Banking, Global Markets and Other.
Receive News & Ratings for Royal Bank of Canada Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Royal Bank of Canada and related companies with MarketBeat.com's FREE daily email newsletter.