WallStSmart

Fidelity National Information Services Inc (FIS)vsItau Unibanco Banco Holding SA (ITUB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 1201% more annual revenue ($138.95B vs $10.68B). ITUB leads profitability with a 32.3% profit margin vs 3.6%. FIS appears more attractively valued with a PEG of 0.28. ITUB earns a higher WallStSmart Score of 76/100 (B+).

FIS

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 5.5Value: 4.7Quality: 5.0
Piotroski: 5/9Altman Z: -0.02

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

FISSignificantly Overvalued (-41.4%)

Margin of Safety

-41.4%

Fair Value

$34.16

Current Price

$47.60

$13.44 premium

UndervaluedFair: $34.16Overvalued
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

FIS4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2810/10

Growing faster than its price suggests

EPS GrowthGrowth
88.1%10/10

Earnings expanding 88.1% YoY

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

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

FIS4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

P/E RatioValuation
67.3x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
-0.022/10

Distress zone — elevated risk

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

2.8% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : FIS

The strongest argument for FIS centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.28 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 : FIS

The primary concerns for FIS are Return on Equity, Profit Margin, P/E Ratio. A P/E of 67.3x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Key Dynamics to Monitor

FIS profiles as a value stock while ITUB is a mature play — different risk/reward profiles.

FIS carries more volatility with a beta of 0.91 — 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 67/100), 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.

Fidelity National Information Services Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

FIS is an American Fortune 500 company which offers a wide range of financial products and services. Headquartered in Jacksonville, Florida, FIS employs approximately 63,000 people worldwide. FIS is most known for its development of Financial Technology, or FinTech, and as of Q2 2020 it offers its solutions in three primary segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions.

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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