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

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

Company Profile

SymbolRYWTW
Company NameRoyal Bank of CanadaWillis Towers Watson Public Limited Company
CountryCanadaUnited Kingdom
GICS SectorFinancialsFinancials
GICS IndustryBanksInsurance
Market Capitalization207.60 billion USD33.57 billion USD
ExchangeNYSENasdaqGS
Listing DateOctober 16, 1995June 12, 2001
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of RY and WTW 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.

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

Historical Performance at a Glance

SymbolRYWTW
5-Day Price Return0.17%1.80%
13-Week Price Return15.43%11.86%
26-Week Price Return23.50%0.94%
52-Week Price Return21.52%16.83%
Month-to-Date Return2.78%-0.39%
Year-to-Date Return18.35%9.85%
10-Day Avg. Volume2.96M0.57M
3-Month Avg. Volume3.41M0.63M
3-Month Volatility13.57%18.36%
Beta0.040.65

Profitability

Return on Equity (TTM)

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.

WTW

1.73%

Insurance Industry

Max
30.96%
Q3
18.76%
Median
14.22%
Q1
10.34%
Min
1.73%

WTW’s Return on Equity of 1.73% is in the lower quartile for the Insurance industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

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

Net Profit Margin (TTM)

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.

WTW

1.40%

Insurance Industry

Max
26.78%
Q3
14.69%
Median
9.87%
Q1
6.59%
Min
-3.51%

Falling into the lower quartile for the Insurance industry, WTW’s Net Profit Margin of 1.40% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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

Operating Profit Margin (TTM)

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.

WTW

6.24%

Insurance Industry

Max
34.52%
Q3
20.17%
Median
14.46%
Q1
9.62%
Min
-2.51%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

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

Profitability at a Glance

SymbolRYWTW
Return on Equity (TTM)14.50%1.73%
Return on Assets (TTM)0.87%0.49%
Net Profit Margin (TTM)26.26%1.40%
Operating Profit Margin (TTM)34.59%6.24%
Gross Profit Margin (TTM)----

Financial Strength

Current Ratio (MRQ)

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.

WTW

1.13

Insurance Industry

Max
2.97
Q3
1.37
Median
0.54
Q1
0.15
Min
0.00

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

RY vs. WTW: A comparison of their Current Ratio (MRQ) against their respective Banks and Insurance industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

WTW

0.66

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.23
Min
0.00

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

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

Interest Coverage Ratio (TTM)

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.

WTW

1.41

Insurance Industry

Max
43.68
Q3
21.45
Median
9.67
Q1
3.55
Min
-5.73

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

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

Financial Strength at a Glance

SymbolRYWTW
Current Ratio (MRQ)--1.13
Quick Ratio (MRQ)--1.11
Debt-to-Equity Ratio (MRQ)2.410.66
Interest Coverage Ratio (TTM)--1.41

Growth

Revenue Growth

RY vs. WTW: 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

RY vs. WTW: 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)

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.

WTW

1.06%

Insurance Industry

Max
9.80%
Q3
5.18%
Median
3.58%
Q1
2.07%
Min
0.00%

WTW’s Dividend Yield of 1.06% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

RY vs. WTW: A comparison of their Dividend Yield (TTM) against their respective Banks and Insurance industry benchmarks.

Dividend Payout Ratio (TTM)

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.

WTW

14.79%

Insurance Industry

Max
169.40%
Q3
85.57%
Median
53.26%
Q1
23.68%
Min
0.00%

WTW’s Dividend Payout Ratio of 14.79% is in the lower quartile for the Insurance industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

SymbolRYWTW
Dividend Yield (TTM)2.99%1.06%
Dividend Payout Ratio (TTM)45.04%14.79%

Valuation

Price-to-Earnings Ratio (TTM)

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.

WTW

245.17

Insurance Industry

Max
30.75
Q3
18.11
Median
12.67
Q1
9.66
Min
2.87

At 245.17, WTW’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Insurance industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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

Price-to-Sales Ratio (TTM)

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.

WTW

3.42

Insurance Industry

Max
3.41
Q3
1.88
Median
1.22
Q1
0.80
Min
0.23

With a P/S Ratio of 3.42, WTW trades at a valuation that eclipses even the highest in the Insurance industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

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

Price-to-Book Ratio (MRQ)

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.

WTW

3.75

Insurance Industry

Max
4.57
Q3
2.56
Median
1.88
Q1
1.20
Min
0.17

WTW’s P/B Ratio of 3.75 is in the upper tier for the Insurance 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 vs. WTW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Banks and Insurance industry benchmarks.

Valuation at a Glance

SymbolRYWTW
Price-to-Earnings Ratio (TTM)15.05245.17
Price-to-Sales Ratio (TTM)3.003.42
Price-to-Book Ratio (MRQ)1.853.75
Price-to-Free Cash Flow Ratio (TTM)3.4026.55