Royal Bank of Canada (NYSE: RY) is one of 307 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Royal Bank of Canada to related businesses based on the strength of its risk, earnings, dividends, institutional ownership, analyst recommendations, profitability and valuation.

Dividends

Royal Bank of Canada pays an annual dividend of $2.84 per share and has a dividend yield of 3.3%. Royal Bank of Canada pays out 46.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 36.3% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Royal Bank of Canada and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Royal Bank of Canada $40.37 billion $8.74 billion 13.98
Royal Bank of Canada Competitors $5.61 billion $755.73 million 415.94

Royal Bank of Canada has higher revenue and earnings than its rivals. Royal Bank of Canada is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

40.5% of Royal Bank of Canada shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held 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.

Analyst Ratings

This is a breakdown of current ratings for Royal Bank of Canada and its rivals, as provided by MarketBeat.

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 2455 8899 8895 373 2.35

Royal Bank of Canada currently has a consensus target price of $100.50, indicating a potential upside of 17.08%. As a group, “Banks” companies have a potential downside of 6.49%. Given Royal Bank of Canada’s higher probable upside, equities research analysts plainly believe Royal Bank of Canada is more favorable than its rivals.

Profitability

This table compares Royal Bank of Canada and its rivals’ 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 17.90% 8.45% 0.95%

Risk & Volatility

Royal Bank of Canada has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Royal Bank of Canada’s rivals have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Summary

Royal Bank of Canada rivals beat Royal Bank of Canada 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.

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