WallStSmart

Banco Bradesco SA ADR (BBD)vsItau Unibanco Banco Holding SA (ITUB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 56% more annual revenue ($138.95B vs $89.27B). ITUB leads profitability with a 32.3% profit margin vs 26.5%. BBD appears more attractively valued with a PEG of 0.49. BBD earns a higher WallStSmart Score of 81/100 (A-).

BBD

Exceptional Buy

81

out of 100

Grade: A-

Growth: 8.0Profit: 7.0Value: 10.0Quality: 5.0
Piotroski: 6/9

ITUB

Strong Buy

76

out of 100

Grade: B+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BBDUndervalued (+77.8%)

Margin of Safety

+77.8%

Fair Value

$18.72

Current Price

$3.55

$15.17 discount

UndervaluedFair: $18.72Overvalued
ITUBOvervalued (-10.1%)

Margin of Safety

-10.1%

Fair Value

$8.69

Current Price

$8.21

$0.48 premium

UndervaluedFair: $8.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BBD6 strengths · Avg: 9.5/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

P/E RatioValuation
8.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
57.2%10/10

Earnings expanding 57.2% YoY

Profit MarginProfitability
26.5%9/10

Keeps 27 of every $100 in revenue as profit

Operating MarginProfitability
24.8%8/10

Strong operational efficiency at 24.8%

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

Areas to Watch

BBD2 concerns · Avg: 1.5/10
Free Cash FlowQuality
$-151.40B2/10

Negative free cash flow — burning cash

Debt/EquityHealth
2.021/10

Elevated debt levels

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

2.8% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : BBD

The strongest argument for BBD centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 26.5% and operating margin at 24.8%. PEG of 0.49 suggests the stock is reasonably priced for its growth.

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.

Bear Case : BBD

The primary concerns for BBD are Free Cash Flow, Debt/Equity. Debt-to-equity of 2.02 is elevated, increasing financial risk.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Key Dynamics to Monitor

BBD carries more volatility with a beta of 0.31 — expect wider price swings.

ITUB is growing revenue faster at 11.0% — 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

BBD scores higher overall (81/100 vs 76/100), backed by strong 26.5% margins. Both earn "Exceptional 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.

Banco Bradesco SA ADR

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Banco Bradesco SA, offers various banking products and services to individuals, corporations and companies in Brazil and internationally. The company is headquartered in Osasco, Brazil.

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.

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