RY vs. BAC, HSBC, HDB, MUFG, C, IBN, TD, SAN, UBS, and SMFG
Should you be buying Royal Bank of Canada stock or one of its competitors? The main competitors of Royal Bank of Canada include Bank of America (BAC), HSBC (HSBC), HDFC Bank (HDB), Mitsubishi UFJ Financial Group (MUFG), Citigroup (C), ICICI Bank (IBN), Toronto-Dominion Bank (TD), Banco Santander (SAN), UBS Group (UBS), and Sumitomo Mitsui Financial Group (SMFG). These companies are all part of the "banking" industry.
Royal Bank of Canada vs.
Bank of America (NYSE:BAC) and Royal Bank of Canada (NYSE:RY) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, community ranking, valuation, analyst recommendations, media sentiment, institutional ownership, earnings, dividends and profitability.
Bank of America currently has a consensus price target of $48.31, indicating a potential upside of 26.50%. Royal Bank of Canada has a consensus price target of $156.50, indicating a potential upside of 34.64%. Given Royal Bank of Canada's stronger consensus rating and higher probable upside, analysts clearly believe Royal Bank of Canada is more favorable than Bank of America.
Bank of America has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
70.7% of Bank of America shares are held by institutional investors. Comparatively, 45.3% of Royal Bank of Canada shares are held by institutional investors. 0.3% of Bank of America shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.7%. Royal Bank of Canada pays an annual dividend of $4.11 per share and has a dividend yield of 3.5%. Bank of America pays out 32.3% of its earnings in the form of a dividend. Royal Bank of Canada pays out 46.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bank of America has raised its dividend for 11 consecutive years and Royal Bank of Canada has raised its dividend for 15 consecutive years. Royal Bank of Canada is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Bank of America has higher revenue and earnings than Royal Bank of Canada. Bank of America is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.
Bank of America received 1290 more outperform votes than Royal Bank of Canada when rated by MarketBeat users. Likewise, 64.78% of users gave Bank of America an outperform vote while only 54.04% of users gave Royal Bank of Canada an outperform vote.
Bank of America has a net margin of 14.10% compared to Royal Bank of Canada's net margin of 12.08%. Royal Bank of Canada's return on equity of 15.26% beat Bank of America's return on equity.
In the previous week, Bank of America had 77 more articles in the media than Royal Bank of Canada. MarketBeat recorded 131 mentions for Bank of America and 54 mentions for Royal Bank of Canada. Royal Bank of Canada's average media sentiment score of 0.83 beat Bank of America's score of 0.63 indicating that Royal Bank of Canada is being referred to more favorably in the news media.
Summary
Bank of America beats Royal Bank of Canada on 13 of the 21 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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This page (NYSE:RY) was last updated on 4/15/2025 by MarketBeat.com Staff
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