WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsWestern Alliance Bancorporation (WAL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 4087% more annual revenue ($138.95B vs $3.32B). ITUB leads profitability with a 32.3% profit margin vs 29.2%. ITUB appears more attractively valued with a PEG of 1.30. WAL earns a higher WallStSmart Score of 79/100 (B+).

ITUB

Strong Buy

76

out of 100

Grade: B+

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

WAL

Strong Buy

79

out of 100

Grade: B+

Growth: 9.3Profit: 7.5Value: 10.0Quality: 4.5
Piotroski: 4/9
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
WALUndervalued (+76.8%)

Margin of Safety

+76.8%

Fair Value

$408.56

Current Price

$70.74

$337.82 discount

UndervaluedFair: $408.56Overvalued

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

WAL6 strengths · Avg: 9.2/10
P/E RatioValuation
8.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
41.1%10/10

Strong operational efficiency at 41.1%

Profit MarginProfitability
29.2%9/10

Keeps 29 of every $100 in revenue as profit

Revenue GrowthGrowth
16.6%8/10

16.6% revenue growth

EPS GrowthGrowth
32.8%8/10

Earnings expanding 32.8% YoY

Areas to Watch

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

2.8% earnings growth

WAL1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-118.20M2/10

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 : WAL

The strongest argument for WAL centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 29.2% and operating margin at 41.1%. Revenue growth of 16.6% demonstrates continued momentum.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Bear Case : WAL

The primary concerns for WAL are Free Cash Flow.

Key Dynamics to Monitor

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

WAL carries more volatility with a beta of 1.34 — expect wider price swings.

WAL is growing revenue faster at 16.6% — sustainability is the question.

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

Bottom Line

WAL scores higher overall (79/100 vs 76/100), backed by strong 29.2% margins and 16.6% 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.

Western Alliance Bancorporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Western Alliance Bancorporation is the banking holding company for Western Alliance Bank offering various banking products and related services primarily in Arizona, California and Nevada. The company is headquartered in Phoenix, Arizona.

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