Comprehensive Stock Comparison
Compare Royal Bank of Canada (RY) vs Citigroup Inc. (C) 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 | C | 9.9% revenue growth vs RY's 2.1% |
| Value | RY | Lower P/E (10.6x vs 10.7x) |
| Quality / Margins | RY | 14.8% net margin vs C's 7.4% |
| Stability / Safety | RY | Beta 0.56 vs C's 1.30 |
| Dividends | RY | 2.7% yield, 2-year raise streak, vs C's 2.5% |
| Momentum (1Y) | RY | +45.3% vs C's +40.8% |
| Efficiency (ROA) | RY | 0.9% ROA vs C's 0.6%, ROIC 2.0% vs 1.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
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.
Citigroup is a global financial services giant operating through two main divisions: Global Consumer Banking serving retail customers and Institutional Clients Group serving corporations and institutions. It generates revenue primarily from interest income on loans and securities (about 60%) and non-interest income from investment banking, trading, and card fees (about 40%). The company's key advantage is its unparalleled global network spanning nearly 100 countries—particularly strong in emerging markets—which provides unique cross-border banking capabilities for multinational clients.
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
RY leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). C leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
C and RY operate at a comparable scale, with $170.7B and $137.4B in trailing revenue. RY is the more profitable business, keeping 14.8% of every revenue dollar as net income compared to C's 7.4%.
| Metric | RYRoyal Bank of Can… | CCitigroup Inc. |
|---|---|---|
| RevenueTrailing 12 months | $137.4B | $170.7B |
| EBITDAEarnings before interest/tax | $28.7B | $24.1B |
| Net IncomeAfter-tax profit | $20.4B | $14.7B |
| Free Cash FlowCash after capex | $53.0B | -$76.0B |
| Gross MarginGross profit ÷ Revenue | +45.3% | +41.7% |
| Operating MarginEBIT ÷ Revenue | +18.7% | +10.0% |
| Net MarginNet income ÷ Revenue | +14.8% | +7.4% |
| FCF MarginFCF ÷ Revenue | +38.6% | -15.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +28.9% | +23.2% |
Valuation Metrics
At 16.2x trailing earnings, RY trades at a 12% valuation discount to C's 18.5x P/E. On an enterprise value basis, C's 23.7x EV/EBITDA is more attractive than RY's 37.2x.
| Metric | RYRoyal Bank of Can… | CCitigroup Inc. |
|---|---|---|
| Market CapShares × price | $234.2B | $192.6B |
| Enterprise ValueMkt cap + debt − cash | $780.4B | $506.6B |
| Trailing P/EPrice ÷ TTM EPS | 16.24x | 18.52x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.58x | 10.69x |
| PEG RatioP/E ÷ EPS growth rate | 1.30x | — |
| EV / EBITDAEnterprise value multiple | 37.17x | 23.72x |
| Price / SalesMarket cap ÷ Revenue | 2.33x | 1.13x |
| Price / BookPrice ÷ Book value/share | 2.32x | 1.00x |
| Price / FCFMarket cap ÷ FCF | 6.05x | — |
Profitability & Efficiency
RY delivers a 14.6% return on equity — every $100 of shareholder capital generates $15 in annual profit, vs $7 for C. C carries lower financial leverage with a 2.82x 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 C's 5/9, reflecting solid financial health.
| Metric | RYRoyal Bank of Can… | CCitigroup Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +14.6% | +6.9% |
| ROA (TTM)Return on assets | +0.9% | +0.6% |
| ROICReturn on invested capital | +2.0% | +1.6% |
| ROCEReturn on capital employed | +3.5% | +3.0% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 6.00x | 2.82x |
| Net DebtTotal debt minus cash | $747.6B | $314.0B |
| Cash & Equiv.Liquid assets | $87.4B | $276.5B |
| Total DebtShort + long-term debt | $835.0B | $590.6B |
| Interest CoverageEBIT ÷ Interest expense | 0.36x | 0.24x |
Total Returns (with DRIP)
A $10,000 investment in RY five years ago would be worth $21,571 today (with dividends reinvested), compared to $17,396 for C. Over the past 12 months, RY leads with a +45.3% total return vs C's +40.8%. The 3-year compound annual growth rate (CAGR) favors C at 32.1% vs RY's 21.0% — a key indicator of consistent wealth creation.
| Metric | RYRoyal Bank of Can… | CCitigroup Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -1.4% | -6.6% |
| 1-Year ReturnPast 12 months | +45.3% | +40.8% |
| 3-Year ReturnCumulative with dividends | +77.2% | +130.6% |
| 5-Year ReturnCumulative with dividends | +115.7% | +74.0% |
| 10-Year ReturnCumulative with dividends | +295.9% | +230.3% |
| CAGR (3Y)Annualised 3-year return | +21.0% | +32.1% |
Risk & Volatility
RY is the less volatile stock with a 0.56 beta — it tends to amplify market swings less than C's 1.30 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 C's 88.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RYRoyal Bank of Can… | CCitigroup Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.56x | 1.30x |
| 52-Week HighHighest price in past year | $176.19 | $125.16 |
| 52-Week LowLowest price in past year | $106.10 | $55.51 |
| % of 52W HighCurrent price vs 52-week peak | +94.9% | +88.1% |
| RSI (14)Momentum oscillator 0–100 | 49.2 | 51.7 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 11.9M |
Analyst Outlook
Wall Street rates RY as "Hold" and C as "Buy". Consensus price targets imply 19.8% upside for C (target: $132) vs -25.3% for RY (target: $125). For income investors, RY offers the higher dividend yield at 2.73% vs C's 2.48%.
| Metric | RYRoyal Bank of Can… | CCitigroup Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $124.85 | $132.09 |
| # AnalystsCovering analysts | 29 | 26 |
| Dividend YieldAnnual dividend ÷ price | +2.7% | +2.5% |
| Dividend StreakConsecutive years of raises | 2 | 3 |
| Dividend / ShareAnnual DPS | $6.24 | $2.73 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.2% | +3.9% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 100 | 226.41 | +126.4% |
| Citigroup Inc. (C) | 100 | 183.15 | +83.2% |
Royal Bank of Canada (RY) returned +116% over 5 years vs Citigroup Inc. (C)'s +74%. 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% |
| Citigroup Inc. (C) | $83.3B | $170.7B | +104.9% |
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% |
| Citigroup Inc. (C) | 17.9% | 7.4% | -58.5% |
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% |
| Citigroup Inc. (C) | 7.8 | 11.8 | +51.3% |
Royal Bank of Canada has traded in a 8x–12x P/E range over 9 years; current trailing P/E is ~16x. Citigroup Inc. has traded in a 6x–13x P/E range over 7 years; current trailing P/E is ~19x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Royal Bank of Canada (RY) | 6.78 | 14.09 | +107.8% |
| Citigroup Inc. (C) | 4.74 | 5.95 | +25.5% |
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). Citigroup Inc. generated $-26B FCF in 2024 (-161% vs 2021).
RY vs C: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is RY or C a better buy right now?
Royal Bank of Canada (RY) offers the better valuation at 16.2x trailing P/E (10.6x forward), making it the more compelling value choice. Analysts rate Citigroup Inc. (C) a "Buy" — based on 26 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 C?
On trailing P/E, Royal Bank of Canada (RY) is the cheapest at 16.2x versus Citigroup Inc. at 18.5x. On forward P/E, Royal Bank of Canada is actually cheaper at 10.6x.
03Which is the better long-term investment — RY or C?
Over the past 5 years, Royal Bank of Canada (RY) delivered a total return of +115.7%, compared to +74.0% for Citigroup Inc. (C). 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: RY returned +295.9% versus C's +230.3%. 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 C?
By beta (market sensitivity over 5 years), Royal Bank of Canada (RY) is the lower-risk stock at 0.56β versus Citigroup Inc.'s 1.30β — meaning C is approximately 133% more volatile than RY relative to the S&P 500. On balance sheet safety, Citigroup Inc. (C) carries a lower debt/equity ratio of 3% versus 6% for Royal Bank of Canada — giving it more financial flexibility in a downturn.
05Which has better profit margins — RY or C?
Royal Bank of Canada (RY) is the more profitable company, earning 14.8% net margin versus 7.4% for Citigroup Inc. — meaning it keeps 14.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RY leads at 18.7% versus 10.0% for C. At the gross margin level — before operating expenses — RY leads at 45.3%, 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 C more undervalued right now?
On forward earnings alone, Royal Bank of Canada (RY) trades at 10.6x forward P/E versus 10.7x for Citigroup Inc. — 0.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for C: 19.8% to $132.09.
07Which pays a better dividend — RY or C?
All stocks in this comparison pay dividends. Royal Bank of Canada (RY) offers the highest yield at 2.7%, versus 2.5% for Citigroup Inc. (C).
08Is RY or C 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%, C: +230.3%), 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 C?
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. In terms of investment character: RY is a large-cap deep-value stock; C is a mid-cap quality compounder stock. 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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