WallStSmart

First Merchants Corporation (FRME)vsItau Unibanco Banco Holding SA (ITUB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 21553% more annual revenue ($138.95B vs $641.70M). FRME leads profitability with a 35.2% profit margin vs 32.3%. ITUB appears more attractively valued with a PEG of 1.30. ITUB earns a higher WallStSmart Score of 76/100 (B+).

FRME

Buy

64

out of 100

Grade: C+

Growth: 4.0Profit: 7.5Value: 7.3Quality: 3.8
Piotroski: 5/9Altman Z: -0.11

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

FRMESignificantly Overvalued (-59.4%)

Margin of Safety

-59.4%

Fair Value

$26.38

Current Price

$38.18

$11.80 premium

UndervaluedFair: $26.38Overvalued
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

FRME4 strengths · Avg: 10.0/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
35.2%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
42.7%10/10

Strong operational efficiency at 42.7%

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

FRME3 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

EPS GrowthGrowth
-10.9%2/10

Earnings declined 10.9%

Altman Z-ScoreHealth
-0.112/10

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 : FRME

The strongest argument for FRME centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 35.2% and operating margin at 42.7%. PEG of 1.40 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 : FRME

The primary concerns for FRME are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Key Dynamics to Monitor

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

FRME 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 64/100), backed by strong 32.3% margins and 11.0% 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.

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.

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