WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsTowne Bank (TOWN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 17016% more annual revenue ($138.95B vs $811.78M). ITUB leads profitability with a 32.3% profit margin vs 20.9%. ITUB trades at a lower P/E of 10.2x. ITUB earns a higher WallStSmart Score of 76/100 (B+).

ITUB

Strong Buy

76

out of 100

Grade: B+

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

TOWN

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 5.7Quality: 5.3
Piotroski: 3/9
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
TOWNSignificantly Overvalued (-136.6%)

Margin of Safety

-136.6%

Fair Value

$15.10

Current Price

$33.29

$18.19 premium

UndervaluedFair: $15.10Overvalued

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

TOWN6 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
35.2%10/10

Strong operational efficiency at 35.2%

Profit MarginProfitability
20.9%9/10

Keeps 21 of every $100 in revenue as profit

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.0x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
26.1%8/10

Revenue surging 26.1% year-over-year

Areas to Watch

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

2.8% earnings growth

TOWN3 concerns · Avg: 2.7/10
Return on EquityProfitability
7.5%3/10

ROE of 7.5% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-4.1%2/10

Earnings declined 4.1%

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 : TOWN

The strongest argument for TOWN centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 20.9% and operating margin at 35.2%. Revenue growth of 26.1% demonstrates continued momentum.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Bear Case : TOWN

The primary concerns for TOWN are Return on Equity, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

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

TOWN carries more volatility with a beta of 0.75 — expect wider price swings.

TOWN is growing revenue faster at 26.1% — sustainability is the question.

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

Bottom Line

ITUB scores higher overall (76/100 vs 60/100), backed by strong 32.3% margins and 11.0% revenue growth. 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.

Towne Bank

FINANCIAL SERVICES · BANKS - REGIONAL · USA

TowneBank offers retail and business banking services for individuals, professionals, and business companies. The company is headquartered in Portsmouth, Virginia.

Want to dig deeper into these stocks?