HI there,
Both are some of the best financials in the industry. Royal Bank is quite simply the best of the big five banks, and has proven itself so during this difficult year. As for EQ Bank, this alternative lender has done nothing but outperform over the past handful of years. It is also positioning itself as a viable alternative to the big banks with the launch of EQ Bank.
I would not however compare the two. Royal Bank is one of the best blue chip companies in the country with one of the softest and longest dividend streaks in the country. On the flip side, EQB is poised for more growth and given its status as an alternative lender is prone to greater volatility. It is quickly becoming a reliable dividend payer, but there is no comparing the historical performance of RY's dividend.
I think both are going to face headwinds over the next couple of years. Low interest rates make for a challenging operating environment and financials will be forced to navigate rough waters. So far however, they have proven up to the task and are trading at discounts to historical valuations.
Which you chose will be dependent on your risk tolerance. I would classify RY as one that is likely to outperform in a bear market, with one of the safest dividends in the country and more of the defensive play. Whereas EQB is likely to outperform in a bull market, is an emerging dividend stock and more of an aggressive play.
Mat