Canada's stock market is anchored by two very different giants: a long-established bank and a modern e-commerce powerhouse. Together, Royal Bank of Canada (RY) and Shopify (SHOP) are the country's two most valuable companies, and the contrast between them tells you almost everything about the Canadian market.
Royal Bank of Canada: the Old-Guard Giant
Royal Bank is Canada's largest company by market value, worth around $270 billion. It is a classic big bank, earning money from lending, wealth management, and capital markets across Canada and beyond. Its revenue runs around $67 billion a year, and it pays a steady dividend yielding roughly 2.6%, making it a cornerstone holding for income investors. RBC is the kind of stable, profitable institution that defines Canada's finance-heavy market.
Shopify: the Modern Challenger
Shopify is the new face of Canadian business, worth around $196 billion. Instead of lending money, it provides the software that lets millions of merchants run online stores. Its revenue, around $13 billion a year, is far smaller than RBC's, but it has grown much faster, which is why the market values it so highly relative to its sales. Shopify pays no dividend, reinvesting everything into growth. It is Canada's answer to the big US tech names.
The Contrast That Defines Canada's Market
Put them side by side and you see the two sides of the Canadian economy. RBC is big, steady, profitable, and income-generating, with far more revenue. Shopify is smaller in sales but faster-growing and more richly valued, a bet on the future rather than the present. One is a value-and-income stock, the other a growth stock. Most of the TSX looks more like RBC, which is why Canada is known as a value and dividend market.
Track Royal Bank of Canada (RY) live on Stock Market ROIFrequently Asked Questions
What is the biggest company in Canada?
By market value, Royal Bank of Canada (RY) is typically the largest, worth around $270 billion, followed closely by Shopify.
How much revenue does Royal Bank of Canada make?
Around $67 billion a year, far more than Shopify's roughly $13 billion, reflecting its scale as Canada's largest bank.
Does Shopify pay a dividend?
No. Shopify reinvests its cash into growth rather than paying dividends, which is common for fast-growing technology companies.
The Bottom Line
Canada's two biggest companies could hardly be more different: Royal Bank, the steady, dividend-paying giant with around $67 billion in revenue, and Shopify, the fast-growing, no-dividend tech star with a fraction of the sales but a huge valuation. Between them they capture the whole Canadian market, a place built on banks and resources, now with a world-class tech company on top. For investors, the pair is a neat way to own both the stability and the growth of Canada in two tickers.
This article is for informational purposes only and is not financial advice. Always do your own research before investing.
