First Merchants Corporation (FRME)vsItau Unibanco Banco Holding SA (ITUB)
FRME
First Merchants Corporation
$40.66
-0.66%
FINANCIAL SERVICES · Cap: $2.55B
ITUB
Itau Unibanco Banco Holding SA
$7.37
-0.47%
FINANCIAL SERVICES · Cap: $104.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Itau Unibanco Banco Holding SA generates 21156% more annual revenue ($143.71B vs $676.12M). ITUB leads profitability with a 32.6% profit margin vs 29.2%. ITUB appears more attractively valued with a PEG of 1.33. FRME earns a higher WallStSmart Score of 78/100 (B+).
FRME
Strong Buy78
out of 100
Grade: B+
ITUB
Strong Buy77
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 45.0%
Keeps 29 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 21.0% year-over-year
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.1%
Generating 70.9B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Attractively priced relative to earnings
Areas to Watch
ROE of 7.4% — below average capital efficiency
Distress zone — elevated risk
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : FRME
The strongest argument for FRME centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 29.2% and operating margin at 45.0%. Revenue growth of 21.0% demonstrates continued momentum.
Bull Case : ITUB
The strongest argument for ITUB centers on Profit Margin, Operating Margin, Free Cash Flow. Profitability is solid with margins at 32.6% and operating margin at 39.1%. Revenue growth of 17.5% demonstrates continued momentum.
Bear Case : FRME
The primary concerns for FRME are Return on Equity, Altman Z-Score.
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
FRME carries more volatility with a beta of 0.88 — expect wider price swings.
FRME is growing revenue faster at 21.0% — 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
FRME scores higher overall (78/100 vs 77/100), backed by strong 29.2% margins and 21.0% 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.
First Merchants Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
First Merchants Corporation is the financial holding company for First Merchants Bank providing community banking services. The company is headquartered in Muncie, Indiana.
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.
Compare with Other BANKS - REGIONAL Stocks
Want to dig deeper into these stocks?