Sifting through countless of stocks in the Banks industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Royal Bank of Canada, East West Bancorp or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.
Read on to learn how Royal Bank of Canada, East West Bancorp and Inc. compare based on key financial metrics to determine which better meets your investment needs.
About Royal Bank of Canada, East West Bancorp and Inc.
Royal Bank of Canada operates as a diversified financial service company worldwide. Its Personal Banking segment offers home equity financing, personal lending, chequing and savings accounts, private banking, auto financing, mutual funds, GICs, credit cards, and payment products and solutions. The company’s Commercial Banking segments provides lending, deposit and transaction banking products and services. Its Wealth Management segment provides a suite of wealth, investment, trust, banking, credit, and other solutions to clients; asset management products to institutional and individual clients; and asset and investor services to financial institutions, asset managers, and asset owners. The company’s Insurance segment offers life, health, travel, wealth, annuities, property and casualty, and reinsurance advice and solutions; digital platforms; and independent brokers and partners, as well as client-led advice and solutions. The company’s Capital Markets segment offers advisory and origination, sales and trading, lending and financing, and transaction banking services to corporations, institutional clients, asset managers, private equity firms, and governments. The company was founded in 1864 and is based in Toronto, Canada.
East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States. The company operates through three segments: Consumer and Business Banking, Commercial Banking, and Treasury and Other. It accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits. The company provides various loan products, such as mortgage and home equity, commercial and residential real estate, construction finance, commercial business lending, working capital lines of credit, trade finance, letters of credit, affordable housing lending, asset-based lending, asset-backed finance, project finance, equipment financing, loan syndication, and equipment loans, as well as financing services for clients to facilitate their business transactions between the United States and Asia. It also provides foreign exchange, treasury management, wealth management, and interest rate and commodity risk hedging services; and mobile, and online banking services. The company was founded in 1973 and is headquartered in Pasadena, California.
Latest Banks and Royal Bank of Canada, East West Bancorp, Inc. Stock News
As of September 2, 2026, Royal Bank of Canada had a $288.0 billion market capitalization, compared to the Banks median of $750.0 million. Royal Bank of Canada’s stock is NA in 2026, NA in the previous five trading days and up 43.6% in the past year.
Currently, Royal Bank of Canada’s price-earnings ratio is 18.4. Royal Bank of Canada’s trailing 12-month revenue is $47.9 billion with a 33.9% net profit margin. Year-over-year quarterly sales growth most recently was 7.4%. Analysts expect adjusted earnings to reach $11.840 per share for the current fiscal year. Royal Bank of Canada currently has a 3.4% dividend yield.
Currently, East West Bancorp, Inc.’s price-earnings ratio is 12.4. East West Bancorp, Inc.’s trailing 12-month revenue is $2.9 billion with a 50.1% net profit margin. Year-over-year quarterly sales growth most recently was 16.3%. Analysts expect adjusted earnings to reach $10.640 per share for the current fiscal year. East West Bancorp, Inc. currently has a 2.5% dividend yield.
How We Compare Royal Bank of Canada, East West Bancorp and Inc. Stock Grades
Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Royal Bank of Canada, East West Bancorp and Inc.’s stock grades to see how they measure up against one another.
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Royal Bank of Canada, East West Bancorp and Inc.’s Quality Grades
| Company | Ticker | Quality |
| Royal Bank of Canada | RY | F |
| East West Bancorp, Inc. | EWBC | D |
Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.
The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.
The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.
Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.
Royal Bank of Canada has a Quality Score of 11, which is Very Weak.
East West Bancorp, Inc. has a Quality Score of 24, which is Weak.
The Quality Stock Winner: No Clear Winner
Neither Royal Bank of Canada, East West Bancorp or Inc. has a high enough Quality Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Royal Bank of Canada, East West Bancorp or Inc. is the better investment when it comes to quality.
Royal Bank of Canada, East West Bancorp and Inc.’s Momentum Grades
| Company | Ticker | Momentum |
| Royal Bank of Canada | RY | B |
| East West Bancorp, Inc. | EWBC | C |
Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.
Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.
Royal Bank of Canada has a Momentum Score of 69, which is Strong.
East West Bancorp, Inc. has a Momentum Score of 55, which is Average.
The Momentum Grade Winner: Royal Bank of Canada
As you can clearly see from the Momentum Grade breakdown above, Royal Bank of Canada is considered to have stronger momentum compared to East West Bancorp, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Royal Bank of Canada could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.
Royal Bank of Canada, East West Bancorp and Inc.’s Estimate Revisions Grades
| Company | Ticker | Earnings Estimate |
| Royal Bank of Canada | RY | B |
| East West Bancorp, Inc. | EWBC | C |
Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).
Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.
Royal Bank of Canada has a Earnings Estimate Score of 63, which is Positive.
East West Bancorp, Inc. has a Earnings Estimate Score of 44, which is Neutral.
The Earnings Estimate Revisions Grade Winner: Royal Bank of Canada
As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Royal Bank of Canada has a better Earnings Estimate Revisions Grade than East West Bancorp, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Royal Bank of Canada could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.
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Other Royal Bank of Canada, East West Bancorp and Inc. Grades
In addition to Quality, Momentum and Estimate Revisions, A+ Investor also provides grades for Value and Growth.
Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Royal Bank of Canada, East West Bancorp and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.
So, Which Is the Better Investment, Royal Bank of Canada, East West Bancorp or Inc. Stock?
Overall, Royal Bank of Canada stock has a Momentum Score of 69, Estimate Revisions Score of 63 and Quality Score of 11.
East West Bancorp, Inc. stock has a Momentum Score of 55, Estimate Revisions Score of 44 and Quality Score of 24.
Comparing Royal Bank of Canada, East West Bancorp and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.
Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.
A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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