WallStSmart

Banco Santander Brasil SA ADR (BSBR)vsItau Unibanco Banco Holding SA (ITUB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 182% more annual revenue ($138.95B vs $49.31B). ITUB leads profitability with a 32.3% profit margin vs 30.3%. BSBR appears more attractively valued with a PEG of 0.42. ITUB earns a higher WallStSmart Score of 76/100 (B+).

BSBR

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 8.7Quality: 5.0

ITUB

Strong Buy

76

out of 100

Grade: B+

Growth: 6.0Profit: 8.0Value: 8.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BSBRUndervalued (+0.1%)

Margin of Safety

+0.1%

Fair Value

$7.08

Current Price

$5.69

$1.39 discount

UndervaluedFair: $7.08Overvalued
ITUBOvervalued (-10.1%)

Margin of Safety

-10.1%

Fair Value

$8.69

Current Price

$8.21

$0.48 premium

UndervaluedFair: $8.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BSBR4 strengths · Avg: 9.5/10
PEG RatioValuation
0.4210/10

Growing faster than its price suggests

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.3%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

ITUB6 strengths · Avg: 9.7/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Profit MarginProfitability
32.3%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
37.3%10/10

Strong operational efficiency at 37.3%

Free Cash FlowQuality
$45.01B10/10

Generating 45.0B in free cash flow

Market CapQuality
$86.41B9/10

Large-cap with strong market position

Return on EquityProfitability
21.0%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

BSBR2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-3.4%2/10

Revenue declined 3.4%

Free Cash FlowQuality
$-21.35B2/10

Negative free cash flow — burning cash

ITUB1 concerns · Avg: 4.0/10
EPS GrowthGrowth
2.8%4/10

2.8% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : BSBR

The strongest argument for BSBR centers on PEG Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.3% and operating margin at 27.7%. PEG of 0.42 suggests the stock is reasonably priced for its growth.

Bull Case : ITUB

The strongest argument for ITUB centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 32.3% and operating margin at 37.3%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : BSBR

The primary concerns for BSBR are Revenue Growth, Free Cash Flow.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Key Dynamics to Monitor

BSBR profiles as a declining stock while ITUB is a mature play — different risk/reward profiles.

BSBR carries more volatility with a beta of 0.28 — expect wider price swings.

ITUB is growing revenue faster at 11.0% — sustainability is the question.

ITUB generates stronger free cash flow (45.0B), providing more financial flexibility.

Bottom Line

ITUB scores higher overall (76/100 vs 72/100), backed by strong 32.3% margins and 11.0% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Banco Santander Brasil SA ADR

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Banco Santander (Brasil) SA offers various banking products and services to individuals, small and medium-sized companies and corporate clients in Brazil and internationally. The company is headquartered in So Paulo, Brazil.

Itau Unibanco Banco Holding SA

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Ita Unibanco Holding SA offers a range of financial products and services in Brazil and internationally. The company is headquartered in So Paulo, Brazil.

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