WallStSmart

Heritage Financial Corporation (HFWA)vsItau Unibanco Banco Holding SA (ITUB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 48604% more annual revenue ($143.71B vs $295.08M). ITUB leads profitability with a 32.6% profit margin vs 26.4%. ITUB appears more attractively valued with a PEG of 1.33. ITUB earns a higher WallStSmart Score of 77/100 (B+).

HFWA

Strong Buy

70

out of 100

Grade: B-

Growth: 8.0Profit: 7.0Value: 5.7Quality: 5.5
Piotroski: 7/9Altman Z: 0.40

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

HFWA6 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
53.1%10/10

Revenue surging 53.1% year-over-year

Profit MarginProfitability
26.4%9/10

Keeps 26 of every $100 in revenue as profit

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

Operating MarginProfitability
28.9%8/10

Strong operational efficiency at 28.9%

ITUB6 strengths · Avg: 9.7/10
P/E RatioValuation
10.3x10/10

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
$90.16B9/10

Large-cap with strong market position

Return on EquityProfitability
21.6%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

HFWA4 concerns · Avg: 3.0/10
PEG RatioValuation
2.134/10

Expensive relative to growth rate

Market CapQuality
$1.17B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Altman Z-ScoreHealth
0.402/10

Distress zone — elevated risk

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 : HFWA

The strongest argument for HFWA centers on Price/Book, Revenue Growth, Profit Margin. Profitability is solid with margins at 26.4% and operating margin at 28.9%. Revenue growth of 53.1% demonstrates continued momentum.

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 : HFWA

The primary concerns for HFWA are PEG Ratio, Market Cap, Return on Equity.

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

HFWA carries more volatility with a beta of 0.48 — expect wider price swings.

HFWA is growing revenue faster at 53.1% — 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 70/100), backed by strong 32.6% margins and 17.5% 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.

Heritage Financial Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Heritage Financial Corporation is the banking holding company for Heritage Bank providing various financial services to small and medium-sized businesses and individuals in the United States. The company is headquartered in Olympia, Washington.

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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