WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsLloyds Banking Group PLC ADR (LYG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 646% more annual revenue ($138.95B vs $18.63B). ITUB leads profitability with a 32.3% profit margin vs 25.0%. LYG appears more attractively valued with a PEG of 0.96. LYG earns a higher WallStSmart Score of 77/100 (B+).

ITUB

Strong Buy

76

out of 100

Grade: B+

Growth: 6.0Profit: 8.0Value: 8.0Quality: 5.0

LYG

Strong Buy

77

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 10.0Quality: 5.8
Piotroski: 4/9
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ITUBOvervalued (-10.1%)

Margin of Safety

-10.1%

Fair Value

$8.69

Current Price

$8.21

$0.48 premium

UndervaluedFair: $8.69Overvalued
LYGUndervalued (+66.5%)

Margin of Safety

+66.5%

Fair Value

$17.32

Current Price

$5.11

$12.21 discount

UndervaluedFair: $17.32Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

LYG6 strengths · Avg: 9.0/10
Operating MarginProfitability
40.6%10/10

Strong operational efficiency at 40.6%

EPS GrowthGrowth
146.4%10/10

Earnings expanding 146.4% YoY

Market CapQuality
$73.74B9/10

Large-cap with strong market position

Profit MarginProfitability
25.0%9/10

Keeps 25 of every $100 in revenue as profit

PEG RatioValuation
0.968/10

Growing faster than its price suggests

P/E RatioValuation
13.6x8/10

Attractively priced relative to earnings

Areas to Watch

ITUB1 concerns · Avg: 4.0/10
EPS GrowthGrowth
2.8%4/10

2.8% earnings growth

LYG2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.853/10

Elevated debt levels

Free Cash FlowQuality
$-622.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : LYG

The strongest argument for LYG centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 25.0% and operating margin at 40.6%. Revenue growth of 14.4% demonstrates continued momentum.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Bear Case : LYG

The primary concerns for LYG are Debt/Equity, Free Cash Flow. Debt-to-equity of 1.85 is elevated, increasing financial risk.

Key Dynamics to Monitor

LYG carries more volatility with a beta of 0.93 — expect wider price swings.

LYG is growing revenue faster at 14.4% — sustainability is the question.

ITUB generates stronger free cash flow (45.0B), providing more financial flexibility.

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

Bottom Line

LYG scores higher overall (77/100 vs 76/100), backed by strong 25.0% margins and 14.4% 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.

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.

Lloyds Banking Group PLC ADR

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Lloyds Banking Group plc, offers a range of banking and financial services in the UK and internationally. The company is headquartered in London, the United Kingdom.

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