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RY vs WFC
Which Stock Would AI Choose? Royal Bank of Canada (RY) vs. Wells Fargo (WFC) Stock Comparison
Key Takeaways
- Royal Bank of Canada (RY) and Wells Fargo (WFC) are both diversified financial institutions, but they operate in different markets and are at different stages of their growth cycles.
- RY has delivered stronger recent relative performance, with a double-digit year-to-date gain and roughly one-third appreciation over the past 12 months, while WFC has pulled back in 2026 after a strong 2025.
- RY leans on wealth management and capital markets momentum, whereas WFC is still rebuilding after the removal of a long-standing Federal Reserve asset cap and the resolution of most regulatory consent orders.
- Both names generate solid profitability, but RY currently posts a higher return on equity (ROE) and a more consistent earnings trend.
- Net interest income (NII, the spread between what a bank earns on loans and pays on deposits) is a shared sensitivity, with both exposed to interest-rate expectations.
- Tickeron's AI tools emphasize trend consistency and momentum when ranking candidates, which favors the steadier setup between these two at present.
Introduction
Investors comparing bank stocks often weigh stability, growth, and regulatory positioning. This stock comparison examines RY, the Toronto-based Royal Bank of Canada, and WFC, the San Francisco-based Wells Fargo & Company. Both are large, systemically important lenders, yet their recent market positioning has diverged. RY has benefited from strength in wealth management and capital markets, while WFC has navigated a transition after the Federal Reserve lifted a years-long restriction on its balance sheet. For traders and long-term investors assessing relative performance across North American financials, the contrast between a Canadian banking leader and a recovering U.S. giant offers a useful lens on how different business models respond to the current interest-rate and economic environment.
RY Overview and Recent Performance
Royal Bank of Canada is Canada's largest bank by market capitalization, with operations spanning personal and commercial banking, wealth management, capital markets, and insurance. Its diversified model has supported consistent results through recent quarters. In its fiscal 2025, which ended October 31, 2025, RY reported revenue of roughly C$62.2 billion, up about 15% year over year, and net income near C$20.4 billion, with adjusted earnings per share growing 25% in the final quarter. Management raised its medium-term ROE target to 17% or higher and increased its quarterly dividend by about 6.5%.
Recent market activity has been constructive for the shares. Over the past 12 months, RY has advanced more than 30%, and it remains solidly higher year to date, even after a modest pullback in recent weeks from its summer highs. Analysts generally rate the stock a Buy, though some valuation models suggest the shares trade at a premium after a prolonged run. Sentiment has been supported by strong fee income and capital-markets activity, tempered by lingering uncertainty around Canada–U.S. trade dynamics and credit-loss provisioning.
WFC Overview and Recent Performance
Wells Fargo & Company is one of the largest U.S. banks, providing consumer banking, commercial lending, wealth management, and investment services. Its recent story has been defined by regulatory recovery: in 2025, the Federal Reserve removed a $1.95 trillion asset cap that had constrained the bank since 2018, and Wells Fargo has since closed most of its outstanding consent orders tied to past compliance failures. For full-year 2025, WFC reported net income of about $21.4 billion, up 8%, with diluted earnings per share rising 17%.
Despite that progress, WFC shares have softened in 2026 after gaining more than 30% in 2025. Its fourth-quarter 2025 results beat on adjusted earnings but missed revenue expectations, and management's 2026 outlook pointed to a modest decline in NII as lower interest rates pressure lending margins. The company also recorded severance costs from workforce reductions. Wells Fargo has achieved its prior return on tangible common equity (ROTCE, a profitability measure that excludes intangible assets) target of 15% and set a new 17–18% goal, while continuing to return capital through buybacks and dividends.
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Head-to-Head Comparison
The clearest contrast between these two banks is geographic and structural. RY dominates a concentrated Canadian market and earns a sizable share of profit from wealth management and capital markets, which have been tailwinds in recent periods. WFC is a broad U.S. consumer and commercial lender whose growth has been partly constrained by regulation and which is now rebuilding loan and deposit momentum.
On profitability, RY's ROE of roughly 17% exceeds WFC's, and RY's earnings trend has been steadier. Wells Fargo, however, trades at a lower price-to-earnings multiple and is earlier in a turnaround, offering a different risk-reward profile. Both face rate sensitivity: falling rates tend to compress NII for each, though WFC's guidance has explicitly flagged that headwind. RY carries exposure to Canadian housing and U.S.–Canada trade risk, while WFC continues to monitor commercial real estate, particularly office loans. In terms of market positioning, RY has shown more persistent momentum, whereas WFC is consolidating after a strong prior year.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely lean toward RY in the current environment. The bank combines steadier earnings growth, higher returns, stronger recent momentum, and favorable catalysts in wealth management and capital markets. Its trend has remained positive over a 12-month horizon even amid short-term consolidation. By contrast, WFC, while fundamentally improving, faces near-term NII pressure and a choppier 2026 price trend. This is a probabilistic assessment of relative positioning rather than a definitive forecast, and both stocks retain distinct appeal depending on an investor's timeframe and risk tolerance.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is RY is a StrongBuy and WFC is a Buy.
RY's RSI Oscillator ascends from oversold territory
The RSI Indicator for RY moved out of oversold territory on October 09, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 32 similar instances when the indicator left oversold territory. In 23 of the 32 cases the stock moved higher. This puts the odds of a move higher at 72%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on RY as a result. In 35 of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 46%.
The Moving Average Convergence Divergence (MACD) for RY just turned positive on October 15, 2026. Looking at past instances where RY's MACD turned positive, the stock continued to rise in 24 of 46 cases over the following month. The odds of a continued upward trend are 52%.
Following a +1.51% 3-day Advance, the price is estimated to grow further. Considering data from situations where RY advanced for three days, in 167 of 347 cases, the price rose further within the following month. The odds of a continued upward trend are 48%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.
RY broke above its upper Bollinger Band on October 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for RY entered a downward trend on October 19, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 13 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 20, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. RY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 63 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 89 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.089) is normal, around the industry mean (1.531). P/E Ratio (12.706) is within average values for comparable stocks, (11.865). Projected Growth (PEG Ratio) (2.257) is also within normal values, averaging (2.139). Dividend Yield (0.025) settles around the average of (0.034) among similar stocks. RY's P/S Ratio (5.537) is slightly higher than the industry average of (3.867).
WFC in upward trend: price may ascend as a result of having broken its lower Bollinger Band on September 22, 2026
WFC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 27 of 39 cases where WFC's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 69%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where WFC's RSI Indicator exited the oversold zone, 15 of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 58%.
The Momentum Indicator moved above the 0 level on October 09, 2026. You may want to consider a long position or call options on WFC as a result. In 50 of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
The Moving Average Convergence Divergence (MACD) for WFC just turned positive on October 09, 2026. Looking at past instances where WFC's MACD turned positive, the stock continued to rise in 32 of 47 cases over the following month. The odds of a continued upward trend are 68%.
Following a +0.98% 3-day Advance, the price is estimated to grow further. Considering data from situations where WFC advanced for three days, in 202 of 330 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
The Aroon Indicator entered an Uptrend today. In 164 of 268 cases where WFC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 61%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 of 70 cases where WFC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 61%.
WFC moved below its 50-day moving average on September 17, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for WFC crossed bearishly below the 50-day moving average on September 24, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 65%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WFC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 2 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 22 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 20, placing this stock worse than average.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating fairly steady price growth. WFC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 59 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 62 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.512) is normal, around the industry mean (1.531). P/E Ratio (11.842) is within average values for comparable stocks, (11.865). Projected Growth (PEG Ratio) (1.264) is also within normal values, averaging (2.139). Dividend Yield (0.024) settles around the average of (0.034) among similar stocks. P/S Ratio (3.144) is also within normal values, averaging (3.867).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
RY | WFC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 25 | 33 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 89 Overvalued | 62 Fair valued | |
PROFIT vs RISK RATING 1..100 | 13 | 22 | |
SMR RATING 1..100 | 3 | 2 | |
PRICE GROWTH RATING 1..100 | 45 | 57 | |
P/E GROWTH RATING 1..100 | 63 | 59 | |
SEASONALITY SCORE 1..100 | 50 | 75 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
WFC's Valuation (62) in the Major Banks industry is in the same range as RY (89). This means that WFC’s stock grew similarly to RY’s over the last 12 months.
RY's Profit vs Risk Rating (13) in the Major Banks industry is in the same range as WFC (22). This means that RY’s stock grew similarly to WFC’s over the last 12 months.
WFC's SMR Rating (2) in the Major Banks industry is in the same range as RY (3). This means that WFC’s stock grew similarly to RY’s over the last 12 months.
RY's Price Growth Rating (45) in the Major Banks industry is in the same range as WFC (57). This means that RY’s stock grew similarly to WFC’s over the last 12 months.
WFC's P/E Growth Rating (59) in the Major Banks industry is in the same range as RY (63). This means that WFC’s stock grew similarly to RY’s over the last 12 months.
| RY | WFC | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 72% | 1 day ago 58% |
| Stochastic ODDS (%) | 1 day ago 39% | 1 day ago 61% |
| Momentum ODDS (%) | 1 day ago 46% | 1 day ago 67% |
| MACD ODDS (%) | 1 day ago 52% | 1 day ago 68% |
| TrendWeek ODDS (%) | 1 day ago 46% | 1 day ago 64% |
| TrendMonth ODDS (%) | 1 day ago 46% | 1 day ago 54% |
| Advances ODDS (%) | 1 day ago 48% | 1 day ago 61% |
| Declines ODDS (%) | 15 days ago 54% | 10 days ago 58% |
| BollingerBands ODDS (%) | 1 day ago 34% | 1 day ago 69% |
| Aroon ODDS (%) | 1 day ago 35% | 2 days ago 61% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
RY’s FA Score shows that 2 FA rating(s) are green while WFC’s FA Score has 2 green FA rating(s).
- RY’s FA Score: 2 green, 3 red.
- WFC’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
RY’s TA Score shows that 4 TA indicator(s) are bullish while WFC’s TA Score has 6 bullish TA indicator(s).
- RY’s TA Score: 4 bullish, 4 bearish.
- WFC’s TA Score: 6 bullish, 4 bearish.
Price Growth
RY (@Major Banks) experienced а +4.23% price change this week, while WFC (@Major Banks) price change was +1.88% for the same time period.
The average weekly price growth across all stocks in the @Major Banks industry was -0.24%. For the same industry, the average monthly price growth was -4.89%, and the average quarterly price growth was +11.12%.
Reported Earning Dates
RY is expected to report earnings on Dec 02, 2026.
WFC is expected to report earnings on Jan 14, 2027.
Industries' Descriptions
@Major Banks (-0.24% weekly)Major banks are among the biggest companies in the world, often times with global reach and market capitalizations in the multi-billions. Large banks often have multiple arms spanning different disciplines, from deposits, to investment banking, to wealth management and insurance. The biggest banks often have key competitive advantages over smaller players in the industry in terms of brand recognition, cost of capital, and efficiency. Think J.P. Morgan, Bank of America, Wells Fargo, and Citigroup.
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RY and
Correlation & Price change
A.I.dvisor indicates that over the last year, RY has been closely correlated with BNS. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if RY jumps, then BNS could also see price increases.
WFC and
Correlation & Price change
A.I.dvisor indicates that over the last year, WFC has been closely correlated with BAC. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if WFC jumps, then BAC could also see price increases.