Hi there,
One of the reasons why you are likely torn - RY and NA have been two of the best performing banks in Canada over the past number of years. Both have similar yields, a dividend that is well covered and have established themselves as two of the best Big Six banks in Canada.
In terms of who my outperform between the two? Tough question. As a smaller bank, National Bank likely has a bigger runway to growth. A company the size of Royal Bank will definitely have a harder time matching their growth rates. However, in times of uncertainty, I'd rather have the biggest and most diversified bank, rather than NA which is smaller and less diversified. You really can't go wrong with either of them, and both will be impacted by low interest rates. That being said, in my opinion RY is the best option overall as it has a slight advantage in terms of overall safety.
Mat