NU vs. RY: Nu Holdings vs. Royal Bank of Canada Stock Comparison

Company Profile

Nu Holdings (NU) and Royal Bank of Canada (RY) are both classified in the Diversified Banks sub-industry within the broader Banks industry, placing them in the closest GICS peer bucket.

Royal Bank of Canada (RY) has more than two decades of public-market history since October 16, 1995, whereas Nu Holdings (NU) listed on December 9, 2021 and has a much shorter record to draw on.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both companies show strong equity returns, but Nu Holdings (NU) at 31.63% is the standout with ROE above its industry range; Royal Bank of Canada (RY) at 16.21% also sits in the top quartile.

Nu Holdings (NU) at 42.73% retains a top-quartile share of revenue as profit, ahead of Royal Bank of Canada (RY) at 33.87%, which keeps about the industry-typical share.

Neither side reports a meaningful operating margin: for Nu Holdings (NU) in Banks and Royal Bank of Canada (RY) in Banks, funding costs are part of the core business, so net margin and ROE are the cleaner profitability reads.

Profitability Metrics

Growth

Nu Holdings (NU) at 28.51% sits in the top revenue growth quartile, while Royal Bank of Canada (RY) at 15.73% is closer to the peer norm — faster top-line expansion for NU.

Only one side can be read here: Nu Holdings (NU) reports EPS growth of 44.92%, ranked against its industry; Royal Bank of Canada (RY) has no EPS growth figure this period.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Nu Holdings (NU) in Banks and Royal Bank of Canada (RY) in Banks both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

debt-to-equity ratio is set aside for both: Nu Holdings (NU) in Banks and Royal Bank of Canada (RY) in Banks run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Dividends

Nu Holdings (NU) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Royal Bank of Canada (RY) reports a yield of 3.23%, ranking against industry peers normally.

Nu Holdings (NU) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Royal Bank of Canada (RY) reports a payout of 41.49%, ranking against industry peers normally.

Dividend Metrics

Valuation

Both Nu Holdings (NU) at 16.48 and Royal Bank of Canada (RY) at 17.58 sit in the richer earnings-multiple quartile for P/E ratio, so investors are paying more for TTM earnings than they pay for typical peers.

P/S ratio is set aside for both Nu Holdings (NU) in Banks and Royal Bank of Canada (RY) in Banks: without a conventional revenue line, pricing per dollar of sales isn’t meaningful, and book- or earnings-based multiples make the better comparison.

Measured against book value, both Nu Holdings (NU) at 4.39 and Royal Bank of Canada (RY) at 2.92 look expensive — each P/B ratio sits above its industry’s benchmark range.

Valuation Metrics