WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsRio Tinto ADR (RIO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 140% more annual revenue ($138.19B vs $57.64B). ITUB leads profitability with a 33.3% profit margin vs 17.3%. ITUB appears more attractively valued with a PEG of 1.35. ITUB earns a higher WallStSmart Score of 74/100 (B).

ITUB

Strong Buy

74

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 7.0Quality: 5.0

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 5.0
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITUB.

RIOUndervalued (+33.7%)

Margin of Safety

+33.7%

Fair Value

$147.89

Current Price

$105.38

$42.51 discount

UndervaluedFair: $147.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITUB6 strengths · Avg: 9.3/10
P/E RatioValuation
9.7x10/10

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
$90.15B9/10

Large-cap with strong market position

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$171.59B9/10

Large-cap with strong market position

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.3%8/10

Strong operational efficiency at 25.3%

Free Cash FlowQuality
$2.53B8/10

Generating 2.5B in free cash flow

Areas to Watch

ITUB2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

Free Cash FlowQuality
$-5.87B2/10

Negative free cash flow — burning cash

RIO2 concerns · Avg: 2.0/10
PEG RatioValuation
5.692/10

Expensive relative to growth rate

EPS GrowthGrowth
-5.6%2/10

Earnings declined 5.6%

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 33.3% and operating margin at 33.1%. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bull Case : RIO

The strongest argument for RIO centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bear Case : ITUB

The primary concerns for ITUB are Revenue Growth, Free Cash Flow.

Bear Case : RIO

The primary concerns for RIO are PEG Ratio, EPS Growth.

Key Dynamics to Monitor

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

RIO carries more volatility with a beta of 0.63 — expect wider price swings.

RIO is growing revenue faster at 14.6% — sustainability is the question.

RIO generates stronger free cash flow (2.5B), providing more financial flexibility.

Bottom Line

ITUB scores higher overall (74/100 vs 54/100), backed by strong 33.3% margins. RIO offers better value entry with a 33.7% margin of safety. 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.

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.

Rio Tinto ADR

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.

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