Comprehensive Stock Comparison
Compare Royal Bank of Canada (RY) vs JPMorgan Chase & Co. (JPM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | JPM | 14.6% revenue growth vs RY's 2.1% |
| Value | RY | Lower P/E (10.6x vs 13.9x), PEG 0.85 vs 1.07 |
| Quality / Margins | JPM | 21.6% net margin vs RY's 14.8% |
| Stability / Safety | RY | Beta 0.56 vs JPM's 1.00 |
| Dividends | RY | 2.7% yield, 2-year raise streak, vs JPM's 1.7% |
| Momentum (1Y) | RY | +45.3% vs JPM's +15.7% |
| Efficiency (ROA) | JPM | 1.3% ROA vs RY's 0.9%, ROIC 5.4% vs 2.0% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Royal Bank of Canada is a diversified financial services institution operating primarily in Canada and internationally. It generates revenue mainly through personal and commercial banking (roughly 50% of earnings), wealth management, capital markets, and insurance services. The bank's competitive advantage lies in its dominant Canadian retail banking franchise — the largest in the country — supported by extensive branch networks and long-standing customer relationships.
JPMorgan Chase is a global financial services giant that operates as a universal bank offering consumer banking, investment banking, commercial banking, and asset management services. It generates revenue primarily through net interest income from lending activities (about 50% of total revenue) and non-interest income from investment banking fees, trading, asset management, and card services. The company's key competitive advantage lies in its massive scale, diversified revenue streams, and fortress balance sheet—which together create significant barriers to entry and provide stability through economic cycles.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
JPM leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). RY leads in 1 (Risk & Volatility). 3 tied.
Financial Metrics (TTM)
JPM is the larger business by revenue, generating $270.8B annually — 2.0x RY's $137.4B. JPM is the more profitable business, keeping 21.6% of every revenue dollar as net income compared to RY's 14.8%.
| Metric | RYRoyal Bank of Can… | JPMJPMorgan Chase & … |
|---|---|---|
| RevenueTrailing 12 months | $137.4B | $270.8B |
| EBITDAEarnings before interest/tax | $28.7B | $81.3B |
| Net IncomeAfter-tax profit | $20.4B | $58.0B |
| Free Cash FlowCash after capex | $53.0B | -$119.7B |
| Gross MarginGross profit ÷ Revenue | +45.3% | +58.6% |
| Operating MarginEBIT ÷ Revenue | +18.7% | +27.7% |
| Net MarginNet income ÷ Revenue | +14.8% | +21.6% |
| FCF MarginFCF ÷ Revenue | +38.6% | -15.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +28.9% | +16.0% |
Valuation Metrics
At 15.2x trailing earnings, JPM trades at a 6% valuation discount to RY's 16.2x P/E. Adjusting for growth (PEG ratio), JPM offers better value at 1.17x vs RY's 1.30x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | RYRoyal Bank of Can… | JPMJPMorgan Chase & … |
|---|---|---|
| Market CapShares × price | $234.2B | $809.7B |
| Enterprise ValueMkt cap + debt − cash | $780.4B | $1.09T |
| Trailing P/EPrice ÷ TTM EPS | 16.24x | 15.21x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.58x | 13.93x |
| PEG RatioP/E ÷ EPS growth rate | 1.30x | 1.17x |
| EV / EBITDAEnterprise value multiple | 37.17x | 13.15x |
| Price / SalesMarket cap ÷ Revenue | 2.33x | 2.99x |
| Price / BookPrice ÷ Book value/share | 2.32x | 2.51x |
| Price / FCFMarket cap ÷ FCF | 6.05x | — |
Profitability & Efficiency
JPM delivers a 16.1% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $15 for RY. JPM carries lower financial leverage with a 2.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to RY's 6.00x. On the Piotroski fundamental quality scale (0–9), RY scores 6/9 vs JPM's 5/9, reflecting solid financial health.
| Metric | RYRoyal Bank of Can… | JPMJPMorgan Chase & … |
|---|---|---|
| ROE (TTM)Return on equity | +14.6% | +16.1% |
| ROA (TTM)Return on assets | +0.9% | +1.3% |
| ROICReturn on invested capital | +2.0% | +5.4% |
| ROCEReturn on capital employed | +3.5% | +8.2% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 6.00x | 2.18x |
| Net DebtTotal debt minus cash | $747.6B | $281.8B |
| Cash & Equiv.Liquid assets | $87.4B | $469.3B |
| Total DebtShort + long-term debt | $835.0B | $751.1B |
| Interest CoverageEBIT ÷ Interest expense | 0.36x | 0.74x |
Total Returns (with DRIP)
A $10,000 investment in RY five years ago would be worth $21,571 today (with dividends reinvested), compared to $21,449 for JPM. Over the past 12 months, RY leads with a +45.3% total return vs JPM's +15.7%. The 3-year compound annual growth rate (CAGR) favors JPM at 30.0% vs RY's 21.0% — a key indicator of consistent wealth creation.
| Metric | RYRoyal Bank of Can… | JPMJPMorgan Chase & … |
|---|---|---|
| YTD ReturnYear-to-date | -1.4% | -7.3% |
| 1-Year ReturnPast 12 months | +45.3% | +15.7% |
| 3-Year ReturnCumulative with dividends | +77.2% | +119.7% |
| 5-Year ReturnCumulative with dividends | +115.7% | +114.5% |
| 10-Year ReturnCumulative with dividends | +295.9% | +497.7% |
| CAGR (3Y)Annualised 3-year return | +21.0% | +30.0% |
Risk & Volatility
RY is the less volatile stock with a 0.56 beta — it tends to amplify market swings less than JPM's 1.00 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RY currently trades 94.9% from its 52-week high vs JPM's 89.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RYRoyal Bank of Can… | JPMJPMorgan Chase & … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.56x | 1.00x |
| 52-Week HighHighest price in past year | $176.19 | $337.25 |
| 52-Week LowLowest price in past year | $106.10 | $202.16 |
| % of 52W HighCurrent price vs 52-week peak | +94.9% | +89.0% |
| RSI (14)Momentum oscillator 0–100 | 49.2 | 48.1 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 9.0M |
Analyst Outlook
Wall Street rates RY as "Hold" and JPM as "Buy". Consensus price targets imply 11.9% upside for JPM (target: $336) vs -25.3% for RY (target: $125). For income investors, RY offers the higher dividend yield at 2.73% vs JPM's 1.71%.
| Metric | RYRoyal Bank of Can… | JPMJPMorgan Chase & … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $124.85 | $336.10 |
| # AnalystsCovering analysts | 29 | 60 |
| Dividend YieldAnnual dividend ÷ price | +2.7% | +1.7% |
| Dividend StreakConsecutive years of raises | 2 | 14 |
| Dividend / ShareAnnual DPS | $6.24 | $5.13 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.2% | +3.5% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 100 | 226.41 | +126.4% |
| JPMorgan Chase & Co. (JPM) | 100 | 265.39 | +165.4% |
Royal Bank of Canada (RY) returned +116% over 5 years vs JPMorgan Chase & Co. (JPM)'s +114%. A $10,000 investment in RY 5 years ago would be worth $21,571 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | $46.0B | $137.4B | +198.7% |
| JPMorgan Chase & Co. (JPM) | $106.4B | $270.8B | +154.5% |
Royal Bank of Canada's revenue grew from $46.0B (2016) to $137.4B (2025) — a 12.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 22.6% | 14.8% | -34.5% |
| JPMorgan Chase & Co. (JPM) | 23.2% | 21.6% | -7.1% |
Royal Bank of Canada's net margin went from 23% (2016) to 15% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 10.8 | 12.1 | +12.0% |
| JPMorgan Chase & Co. (JPM) | 16.9 | 12.1 | -28.4% |
Royal Bank of Canada has traded in a 8x–12x P/E range over 9 years; current trailing P/E is ~16x. JPMorgan Chase & Co. has traded in a 10x–17x P/E range over 8 years; current trailing P/E is ~15x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 6.78 | 14.09 | +107.8% |
| JPMorgan Chase & Co. (JPM) | 6.19 | 19.75 | +219.1% |
Royal Bank of Canada's EPS grew from $6.78 (2016) to $14.09 (2025) — a 8% CAGR.
Chart 6Free Cash Flow — 5 Years
Royal Bank of Canada generated $53B FCF in 2025 (-10% vs 2021). JPMorgan Chase & Co. generated $-42B FCF in 2024 (-154% vs 2021).
RY vs JPM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is RY or JPM a better buy right now?
JPMorgan Chase & Co. (JPM) offers the better valuation at 15.2x trailing P/E (13.9x forward), making it the more compelling value choice. Analysts rate JPMorgan Chase & Co. (JPM) a "Buy" — based on 60 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — RY or JPM?
On trailing P/E, JPMorgan Chase & Co. (JPM) is the cheapest at 15.2x versus Royal Bank of Canada at 16.2x. On forward P/E, Royal Bank of Canada is actually cheaper at 10.6x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Royal Bank of Canada wins at 0.85x versus JPMorgan Chase & Co.'s 1.07x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — RY or JPM?
Over the past 5 years, Royal Bank of Canada (RY) delivered a total return of +115.7%, compared to +114.5% for JPMorgan Chase & Co. (JPM). A $10,000 investment in RY five years ago would be worth approximately $22K today (assuming dividends reinvested). Over 10 years, the gap is even starker: JPM returned +497.7% versus RY's +295.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — RY or JPM?
By beta (market sensitivity over 5 years), Royal Bank of Canada (RY) is the lower-risk stock at 0.56β versus JPMorgan Chase & Co.'s 1.00β — meaning JPM is approximately 80% more volatile than RY relative to the S&P 500. On balance sheet safety, JPMorgan Chase & Co. (JPM) carries a lower debt/equity ratio of 2% versus 6% for Royal Bank of Canada — giving it more financial flexibility in a downturn.
05Which has better profit margins — RY or JPM?
JPMorgan Chase & Co. (JPM) is the more profitable company, earning 21.6% net margin versus 14.8% for Royal Bank of Canada — meaning it keeps 21.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: JPM leads at 27.7% versus 18.7% for RY. At the gross margin level — before operating expenses — JPM leads at 58.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is RY or JPM more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Royal Bank of Canada (RY) is the more undervalued stock at a PEG of 0.85x versus JPMorgan Chase & Co.'s 1.07x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Royal Bank of Canada (RY) trades at 10.6x forward P/E versus 13.9x for JPMorgan Chase & Co. — 3.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for JPM: 11.9% to $336.10.
07Which pays a better dividend — RY or JPM?
All stocks in this comparison pay dividends. Royal Bank of Canada (RY) offers the highest yield at 2.7%, versus 1.7% for JPMorgan Chase & Co. (JPM).
08Is RY or JPM better for a retirement portfolio?
For long-horizon retirement investors, Royal Bank of Canada (RY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.56), 2.7% yield, +295.9% 10Y return). Both have compounded well over 10 years (RY: +295.9%, JPM: +497.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between RY and JPM?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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