WallStSmart

First Merchants Corporation Depository Shares (FRMEP)vsItau Unibanco Banco Holding SA (ITUB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 21566% more annual revenue ($138.19B vs $637.81M). ITUB leads profitability with a 33.3% profit margin vs 31.2%. FRMEP trades at a lower P/E of 6.8x. ITUB earns a higher WallStSmart Score of 74/100 (B).

FRMEP

Hold

39

out of 100

Grade: F

Growth: 4.0Profit: 6.5Value: 6.7Quality: 6.5
Piotroski: 6/9Altman Z: -0.11

ITUB

Strong Buy

74

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 7.0Quality: 3.3
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRMEP4 strengths · Avg: 9.5/10
P/E RatioValuation
6.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
31.2%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
22.6%8/10

Strong operational efficiency at 22.6%

ITUB6 strengths · Avg: 9.3/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

Profit MarginProfitability
33.3%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
33.1%10/10

Strong operational efficiency at 33.1%

Market CapQuality
$90.71B9/10

Large-cap with strong market position

Return on EquityProfitability
21.2%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

FRMEP4 concerns · Avg: 2.3/10
Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

Revenue GrowthGrowth
-2.5%2/10

Revenue declined 2.5%

EPS GrowthGrowth
-52.1%2/10

Earnings declined 52.1%

Altman Z-ScoreHealth
-0.112/10

Distress zone — elevated risk

ITUB4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

Free Cash FlowQuality
$-5.87B2/10

Negative free cash flow — burning cash

Debt/EquityHealth
4.991/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : FRMEP

The strongest argument for FRMEP centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 31.2% and operating margin at 22.6%.

Bull Case : ITUB

The strongest argument for ITUB centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 33.3% and operating margin at 33.1%. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bear Case : FRMEP

The primary concerns for FRMEP are Return on Equity, Revenue Growth, EPS Growth.

Bear Case : ITUB

The primary concerns for ITUB are Piotroski F-Score, Revenue Growth, Free Cash Flow. Debt-to-equity of 4.99 is elevated, increasing financial risk.

Key Dynamics to Monitor

FRMEP carries more volatility with a beta of 0.86 — expect wider price swings.

ITUB is growing revenue faster at -2.1% — sustainability is the question.

FRMEP generates stronger free cash flow (59M), providing more financial flexibility.

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

Bottom Line

ITUB scores higher overall (74/100 vs 39/100), backed by strong 33.3% margins. Both earn "Strong Buy" and "Hold" 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 Depository Shares

FINANCIAL SERVICES · BANKS - REGIONAL · USA

First Merchants Corporation Depository Shares (FRMEP) embody a compelling investment opportunity within the Midwest's financial services sector, supported by a well-established banking institution. The company offers a comprehensive suite of financial solutions, including commercial banking, consumer lending, and wealth management, designed to address the distinct needs of its diverse client base. First Merchants prioritizes community engagement and sustainable growth, showcasing a strong commitment to enhancing shareholder value while maintaining resilience and financial stability amid varying market conditions. This strategic focus makes First Merchants an appealing choice for institutional investors seeking reliable returns in an evolving economic landscape.

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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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