AFL vs. RY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFL and RY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
RY’s market capitalization of 187.06 billion USD is significantly greater than AFL’s 56.54 billion USD, highlighting its more substantial market valuation.
With betas of 0.81 for AFL and 1.02 for RY, both stocks show similar sensitivity to overall market movements.
| Symbol | AFL | RY |
|---|---|---|
| Company Name | Aflac Incorporated | Royal Bank of Canada |
| Country | US | CA |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Life | Banks - Diversified |
| CEO | Daniel Paul Amos | David I. McKay |
| Price | 104.57 USD | 132.64 USD |
| Market Cap | 56.54 billion USD | 187.06 billion USD |
| Beta | 0.81 | 1.02 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | October 16, 1995 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AFL and RY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AFL
13.91%
Insurance - Life Industry
- Max
- 23.38%
- Q3
- 14.56%
- Median
- 11.23%
- Q1
- 1.67%
- Min
- -5.23%
AFL’s Return on Equity of 13.91% is on par with the norm for the Insurance - Life industry, indicating its profitability relative to shareholder equity is typical for the sector.
RY
14.05%
Banks - Diversified Industry
- Max
- 20.93%
- Q3
- 14.73%
- Median
- 12.33%
- Q1
- 9.14%
- Min
- 5.86%
RY’s Return on Equity of 14.05% is on par with the norm for the Banks - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AFL
2.99%
Insurance - Life Industry
- Max
- 6.30%
- Q3
- 3.33%
- Median
- 2.16%
- Q1
- 0.68%
- Min
- -0.10%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Life industry.
RY
0.86%
Banks - Diversified Industry
- Max
- 4.52%
- Q3
- 2.95%
- Median
- 1.89%
- Q1
- 0.86%
- Min
- 0.18%
Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.
Net Profit Margin
AFL
21.03%
Insurance - Life Industry
- Max
- 21.20%
- Q3
- 11.59%
- Median
- 7.10%
- Q1
- 3.79%
- Min
- 2.14%
A Net Profit Margin of 21.03% places AFL in the upper quartile for the Insurance - Life industry, signifying strong profitability and more effective cost management than most of its peers.
RY
29.41%
Banks - Diversified Industry
- Max
- 33.40%
- Q3
- 26.40%
- Median
- 19.24%
- Q1
- 14.99%
- Min
- 7.95%
A Net Profit Margin of 29.41% places RY in the upper quartile for the Banks - Diversified industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AFL
25.70%
Insurance - Life Industry
- Max
- 38.96%
- Q3
- 37.28%
- Median
- 14.06%
- Q1
- 8.95%
- Min
- -1.68%
In the Insurance - Life industry, Operating Profit Margin is often not the primary measure of operational efficiency.
RY
40.86%
Banks - Diversified Industry
- Max
- 50.90%
- Q3
- 37.76%
- Median
- 28.44%
- Q1
- 15.73%
- Min
- 8.60%
An Operating Profit Margin of 40.86% places RY in the upper quartile for the Banks - Diversified industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AFL | RY |
|---|---|---|
| Return on Equity (TTM) | 13.91% | 14.05% |
| Return on Assets (TTM) | 2.99% | 0.81% |
| Return on Invested Capital (TTM) | 2.99% | 0.86% |
| Net Profit Margin (TTM) | 21.03% | 29.41% |
| Operating Profit Margin (TTM) | 25.70% | 40.86% |
| Gross Profit Margin (TTM) | 79.82% | 100.00% |
Financial Strength
Current Ratio
AFL
--
Insurance - Life Industry
- Max
- 843.97
- Q3
- 821.68
- Median
- 6.06
- Q1
- 3.15
- Min
- 0.47
Current Ratio data for AFL is currently unavailable.
RY
--
Banks - Diversified Industry
- Max
- 0.67
- Q3
- 0.49
- Median
- 0.39
- Q1
- 0.28
- Min
- 0.06
For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio
AFL
0.29
Insurance - Life Industry
- Max
- 0.86
- Q3
- 0.83
- Median
- 0.55
- Q1
- 0.37
- Min
- 0.27
Falling into the lower quartile for the Insurance - Life industry, AFL’s Debt-to-Equity Ratio of 0.29 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
RY
3.70
Banks - Diversified Industry
- Max
- 4.98
- Q3
- 3.65
- Median
- 3.13
- Q1
- 1.73
- Min
- 0.09
RY’s leverage is in the upper quartile of the Banks - Diversified industry, with a Debt-to-Equity Ratio of 3.70. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
AFL
21.96
Insurance - Life Industry
- Max
- 37.82
- Q3
- 19.50
- Median
- 6.25
- Q1
- 2.29
- Min
- -0.76
AFL’s Interest Coverage Ratio of 21.96 is in the upper quartile for the Insurance - Life industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
RY
0.32
Banks - Diversified Industry
- Max
- 0.98
- Q3
- 0.78
- Median
- 0.55
- Q1
- 0.31
- Min
- 0.09
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.
Financial Strength at a Glance
| Symbol | AFL | RY |
|---|---|---|
| Current Ratio (TTM) | -- | -- |
| Quick Ratio (TTM) | -- | -- |
| Debt-to-Equity Ratio (TTM) | 0.29 | 3.70 |
| Debt-to-Asset Ratio (TTM) | 0.06 | 0.22 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.57 | 13.45 |
| Interest Coverage Ratio (TTM) | 21.95 | 0.32 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFL and RY. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AFL
2.07%
Insurance - Life Industry
- Max
- 10.36%
- Q3
- 4.76%
- Median
- 2.40%
- Q1
- 1.51%
- Min
- 0.00%
AFL’s Dividend Yield of 2.07% is consistent with its peers in the Insurance - Life industry, providing a dividend return that is standard for its sector.
RY
3.53%
Banks - Diversified Industry
- Max
- 7.73%
- Q3
- 4.16%
- Median
- 3.24%
- Q1
- 2.27%
- Min
- 0.00%
RY’s Dividend Yield of 3.53% is consistent with its peers in the Banks - Diversified industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AFL
31.03%
Insurance - Life Industry
- Max
- 203.94%
- Q3
- 64.38%
- Median
- 29.88%
- Q1
- 19.14%
- Min
- 0.00%
AFL’s Dividend Payout Ratio of 31.03% is within the typical range for the Insurance - Life industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
RY
42.17%
Banks - Diversified Industry
- Max
- 84.94%
- Q3
- 39.11%
- Median
- 26.91%
- Q1
- 0.00%
- Min
- 0.00%
RY’s Dividend Payout Ratio of 42.17% is in the upper quartile for the Banks - Diversified industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AFL | RY |
|---|---|---|
| Dividend Yield (TTM) | 2.07% | 3.53% |
| Dividend Payout Ratio (TTM) | 31.03% | 42.17% |
Valuation
Price-to-Earnings Ratio
AFL
15.85
Insurance - Life Industry
- Max
- 17.82
- Q3
- 16.08
- Median
- 12.43
- Q1
- 7.33
- Min
- 3.69
AFL’s P/E Ratio of 15.85 is within the middle range for the Insurance - Life industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
RY
14.28
Banks - Diversified Industry
- Max
- 14.13
- Q3
- 13.37
- Median
- 11.90
- Q1
- 9.29
- Min
- 7.43
At 14.28, RY’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Banks - Diversified industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
AFL
2.40
Insurance - Life Industry
- Max
- 3.81
- Q3
- 1.95
- Median
- 0.97
- Q1
- 0.53
- Min
- 0.24
A Forward PEG Ratio of 2.40 places AFL in the upper quartile for the Insurance - Life industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
RY
1.62
Banks - Diversified Industry
- Max
- 1.98
- Q3
- 1.41
- Median
- 1.15
- Q1
- 0.77
- Min
- 0.45
A Forward PEG Ratio of 1.62 places RY in the upper quartile for the Banks - Diversified industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
AFL
3.31
Insurance - Life Industry
- Max
- 3.84
- Q3
- 2.89
- Median
- 1.06
- Q1
- 0.63
- Min
- 0.31
AFL’s P/S Ratio of 3.31 is in the upper echelon for the Insurance - Life industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
RY
4.19
Banks - Diversified Industry
- Max
- 4.15
- Q3
- 2.92
- Median
- 2.29
- Q1
- 1.83
- Min
- 0.94
The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.
Price-to-Book Ratio
AFL
2.16
Insurance - Life Industry
- Max
- 3.87
- Q3
- 2.13
- Median
- 1.49
- Q1
- 0.95
- Min
- 0.38
AFL’s P/B Ratio of 2.16 is in the upper tier for the Insurance - Life industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
RY
1.91
Banks - Diversified Industry
- Max
- 1.89
- Q3
- 1.47
- Median
- 1.23
- Q1
- 1.10
- Min
- 0.65
At 1.91, RY’s P/B Ratio is at an extreme premium to the Banks - Diversified industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AFL | RY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 15.85 | 14.28 |
| Forward PEG Ratio (TTM) | 2.40 | 1.62 |
| Price-to-Sales Ratio (P/S, TTM) | 3.31 | 4.19 |
| Price-to-Book Ratio (P/B, TTM) | 2.16 | 1.91 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 23.10 | 4.41 |
| EV-to-EBITDA (TTM) | 13.45 | 22.56 |
| EV-to-Sales (TTM) | 3.46 | 10.37 |