WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vs1st Source Corporation (SRCE)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 32887% more annual revenue ($138.95B vs $421.22M). SRCE leads profitability with a 37.6% profit margin vs 32.3%. ITUB appears more attractively valued with a PEG of 1.30. SRCE earns a higher WallStSmart Score of 78/100 (B+).

ITUB

Strong Buy

76

out of 100

Grade: B+

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

SRCE

Strong Buy

78

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 10.0Quality: 7.5
Piotroski: 6/9Altman Z: 0.59
IV

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
SRCEUndervalued (+77.1%)

Margin of Safety

+77.1%

Fair Value

$299.99

Current Price

$68.05

$231.94 discount

UndervaluedFair: $299.99Overvalued

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

SRCE6 strengths · Avg: 9.5/10
P/E RatioValuation
10.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
37.6%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
50.0%10/10

Strong operational efficiency at 50.0%

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
16.8%8/10

16.8% revenue growth

Areas to Watch

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

2.8% earnings growth

SRCE2 concerns · Avg: 2.5/10
Market CapQuality
$1.66B3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
0.592/10

Distress zone — elevated risk

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 : SRCE

The strongest argument for SRCE centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 37.6% and operating margin at 50.0%. Revenue growth of 16.8% demonstrates continued momentum.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Bear Case : SRCE

The primary concerns for SRCE are Market Cap, Altman Z-Score.

Key Dynamics to Monitor

ITUB profiles as a mature stock while SRCE is a growth play — different risk/reward profiles.

SRCE carries more volatility with a beta of 0.61 — expect wider price swings.

SRCE is growing revenue faster at 16.8% — sustainability is the question.

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

Bottom Line

SRCE scores higher overall (78/100 vs 76/100), backed by strong 37.6% margins and 16.8% 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.

1st Source Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

1st Source Corporation is the holding company of 1st Source Bank providing commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and commercial clients. The company is headquartered in South Bend, Indiana.

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