MCO vs. RY: A Head-to-Head Stock Comparison

Updated on October 8, 2025

Here’s a clear look at MCO and RY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	MCO	RY
Company Name	Moody's Corporation	Royal Bank of Canada
Country	United States	Canada
GICS Sector	Financials	Financials
GICS Industry	Capital Markets	Banks
Market Capitalization	86.71 billion USD	207.36 billion USD
Exchange	NYSE	NYSE
Listing Date	October 31, 1994	October 16, 1995
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of MCO 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.

MCO vs. RY: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	MCO	RY
5-Day Price Return	1.46%	0.18%
13-Week Price Return	-3.77%	14.22%
26-Week Price Return	3.13%	26.50%
52-Week Price Return	3.38%	24.63%
Month-to-Date Return	1.46%	-0.03%
Year-to-Date Return	2.13%	18.31%
10-Day Avg. Volume	0.74M	2.60M
3-Month Avg. Volume	0.71M	3.40M
3-Month Volatility	20.72%	13.40%
Beta	1.47	0.04

Profitability

Return on Equity (TTM)

MCO

56.41%

Capital Markets Industry

Max: 38.97%
Q3: 22.24%
Median: 13.52%
Q1: 8.61%
Min: -4.25%

MCO’s Return on Equity of 56.41% is exceptionally high, placing it well beyond the typical range for the Capital Markets industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

RY

14.50%

Banks Industry

Max: 25.40%
Q3: 15.55%
Median: 12.00%
Q1: 8.98%
Min: -0.10%

RY’s Return on Equity of 14.50% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

MCO vs. RY: A comparison of their Return on Equity (TTM) against their respective Capital Markets and Banks industry benchmarks.

Net Profit Margin (TTM)

MCO

29.18%

Capital Markets Industry

Max: 69.91%
Q3: 37.24%
Median: 24.30%
Q1: 13.06%
Min: -15.18%

MCO’s Net Profit Margin of 29.18% is aligned with the median group of its peers in the Capital Markets industry. This indicates its ability to convert revenue into profit is typical for the sector.

RY

26.26%

Banks Industry

Max: 54.20%
Q3: 35.73%
Median: 28.97%
Q1: 22.56%
Min: 6.98%

RY’s Net Profit Margin of 26.26% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

MCO vs. RY: A comparison of their Net Profit Margin (TTM) against their respective Capital Markets and Banks industry benchmarks.

Operating Profit Margin (TTM)

MCO

40.55%

Capital Markets Industry

Max: 84.86%
Q3: 47.16%
Median: 32.23%
Q1: 18.65%
Min: -21.87%

MCO’s Operating Profit Margin of 40.55% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.

RY

34.59%

Banks Industry

Max: 63.35%
Q3: 44.73%
Median: 37.24%
Q1: 28.25%
Min: 12.28%

RY’s Operating Profit Margin of 34.59% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

MCO vs. RY: A comparison of their Operating Profit Margin (TTM) against their respective Capital Markets and Banks industry benchmarks.

Profitability at a Glance

Symbol	MCO	RY
Return on Equity (TTM)	56.41%	14.50%
Return on Assets (TTM)	13.79%	0.87%
Net Profit Margin (TTM)	29.18%	26.26%
Operating Profit Margin (TTM)	40.55%	34.59%
Gross Profit Margin (TTM)	72.78%	--

Financial Strength

Current Ratio (MRQ)

MCO

1.75

Capital Markets Industry

Max: 3.37
Q3: 1.81
Median: 1.01
Q1: 0.56
Min: 0.04

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

RY

Banks Industry

Max: --
Q3: --
Median: --
Q1: --
Min: --

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

MCO vs. RY: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Banks industry benchmarks.

Debt-to-Equity Ratio (MRQ)

MCO

1.76

Capital Markets Industry

Max: 6.52
Q3: 2.79
Median: 0.96
Q1: 0.28
Min: 0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

RY

2.41

Banks Industry

Max: 5.78
Q3: 2.66
Median: 1.05
Q1: 0.40
Min: 0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

MCO vs. RY: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Banks industry benchmarks.

Interest Coverage Ratio (TTM)

MCO

17.56

Capital Markets Industry

Max: 107.59
Q3: 48.41
Median: 10.85
Q1: 4.56
Min: -36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

RY

Banks Industry

Max: --
Q3: --
Median: --
Q1: --
Min: --

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

MCO vs. RY: A comparison of their Interest Coverage Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Financial Strength at a Glance

Symbol	MCO	RY
Current Ratio (MRQ)	1.75	--
Quick Ratio (MRQ)	1.75	--
Debt-to-Equity Ratio (MRQ)	1.76	2.41
Interest Coverage Ratio (TTM)	17.56	--

Growth

Revenue Growth

MCO vs. RY: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MCO vs. RY: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MCO

0.78%

Capital Markets Industry

Max: 9.02%
Q3: 4.54%
Median: 2.55%
Q1: 1.27%
Min: 0.00%

MCO’s Dividend Yield of 0.78% is in the lower quartile for the Capital Markets industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

RY

2.99%

Banks Industry

Max: 11.03%
Q3: 6.00%
Median: 3.87%
Q1: 2.41%
Min: 0.00%

RY’s Dividend Yield of 2.99% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

MCO vs. RY: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Banks industry benchmarks.

Dividend Payout Ratio (TTM)

MCO

31.75%

Capital Markets Industry

Max: 199.38%
Q3: 99.28%
Median: 60.67%
Q1: 32.00%
Min: 0.00%

MCO’s Dividend Payout Ratio of 31.75% is in the lower quartile for the Capital Markets industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

RY

45.04%

Banks Industry

Max: 134.24%
Q3: 79.39%
Median: 55.09%
Q1: 36.09%
Min: 0.00%

RY’s Dividend Payout Ratio of 45.04% is within the typical range for the Banks industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

MCO vs. RY: A comparison of their Dividend Payout Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Dividend at a Glance

Symbol	MCO	RY
Dividend Yield (TTM)	0.78%	2.99%
Dividend Payout Ratio (TTM)	31.75%	45.04%

Valuation

Price-to-Earnings Ratio (TTM)

MCO

40.82

Capital Markets Industry

Max: 51.69
Q3: 29.42
Median: 17.58
Q1: 12.55
Min: 5.59

A P/E Ratio of 40.82 places MCO in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

RY

15.05

Banks Industry

Max: 22.69
Q3: 13.75
Median: 10.32
Q1: 7.73
Min: 2.59

A P/E Ratio of 15.05 places RY in the upper quartile for the Banks industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

MCO vs. RY: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Price-to-Sales Ratio (TTM)

MCO

11.91

Capital Markets Industry

Max: 14.65
Q3: 7.29
Median: 4.53
Q1: 2.26
Min: 0.04

MCO’s P/S Ratio of 11.91 is in the upper echelon for the Capital Markets 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

3.00

Banks Industry

Max: 4.90
Q3: 2.98
Median: 2.24
Q1: 1.59
Min: 0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

MCO vs. RY: A comparison of their Price-to-Sales Ratio (TTM) against their respective Capital Markets and Banks industry benchmarks.

Price-to-Book Ratio (MRQ)

MCO

22.85

Capital Markets Industry

Max: 10.83
Q3: 5.12
Median: 2.66
Q1: 1.19
Min: 0.37

At 22.85, MCO’s P/B Ratio is at an extreme premium to the Capital Markets 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.

RY

1.85

Banks Industry

Max: 2.09
Q3: 1.40
Median: 1.11
Q1: 0.86
Min: 0.29

RY’s P/B Ratio of 1.85 is in the upper tier for the Banks 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.

MCO vs. RY: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Banks industry benchmarks.

Valuation at a Glance

Symbol	MCO	RY
Price-to-Earnings Ratio (TTM)	40.82	15.05
Price-to-Sales Ratio (TTM)	11.91	3.00
Price-to-Book Ratio (MRQ)	22.85	1.85
Price-to-Free Cash Flow Ratio (TTM)	36.70	3.40