WallStSmart

Flagstar Financial, Inc. (FLG)vsItau Unibanco Banco Holding SA (ITUB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 6976% more annual revenue ($143.71B vs $2.03B). ITUB leads profitability with a 32.6% profit margin vs 2.4%. FLG appears more attractively valued with a PEG of 0.47. ITUB earns a higher WallStSmart Score of 77/100 (B+).

FLG

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 4.5Value: 5.7Quality: 4.3
Piotroski: 4/9Altman Z: -0.10

ITUB

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 3.3
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FLG4 strengths · Avg: 9.0/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Revenue GrowthGrowth
15.3%8/10

15.3% revenue growth

ITUB6 strengths · Avg: 9.7/10
P/E RatioValuation
10.0x10/10

Attractively priced relative to earnings

Profit MarginProfitability
32.6%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
39.1%10/10

Strong operational efficiency at 39.1%

Free Cash FlowQuality
$70.94B10/10

Generating 70.9B in free cash flow

Market CapQuality
$91.48B9/10

Large-cap with strong market position

Return on EquityProfitability
21.6%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

FLG4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Debt/EquityHealth
1.343/10

Elevated debt levels

P/E RatioValuation
450.7x2/10

Premium valuation, high expectations priced in

ITUB2 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
4.711/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : FLG

The strongest argument for FLG centers on PEG Ratio, Price/Book, Operating Margin. Revenue growth of 15.3% demonstrates continued momentum. PEG of 0.47 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 32.6% and operating margin at 39.1%. Revenue growth of 17.5% demonstrates continued momentum.

Bear Case : FLG

The primary concerns for FLG are EPS Growth, Profit Margin, Debt/Equity. A P/E of 450.7x leaves little room for execution misses. Thin 2.4% margins leave little buffer for downturns.

Bear Case : ITUB

The primary concerns for ITUB are Piotroski F-Score, Debt/Equity. Debt-to-equity of 4.71 is elevated, increasing financial risk.

Key Dynamics to Monitor

FLG carries more volatility with a beta of 0.99 — expect wider price swings.

ITUB is growing revenue faster at 17.5% — sustainability is the question.

ITUB generates stronger free cash flow (70.9B), providing more financial flexibility.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ITUB scores higher overall (77/100 vs 62/100), backed by strong 32.6% margins and 17.5% revenue growth. Both earn "Strong Buy" and "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.

Flagstar Financial, Inc.

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Flagstar Financial, Inc. is the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company is headquartered in Hicksville, New York.

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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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