WallStSmart

Capital Bancorp (CBNK)vsItau Unibanco Banco Holding SA (ITUB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 60305% more annual revenue ($138.95B vs $230.03M). ITUB leads profitability with a 32.3% profit margin vs 24.8%. CBNK trades at a lower P/E of 8.4x. ITUB earns a higher WallStSmart Score of 76/100 (B+).

CBNK

Strong Buy

69

out of 100

Grade: B-

Growth: 8.7Profit: 7.5Value: 8.3Quality: 5.0

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

CBNKUndervalued (+80.3%)

Margin of Safety

+80.3%

Fair Value

$159.59

Current Price

$29.43

$130.16 discount

UndervaluedFair: $159.59Overvalued
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

CBNK6 strengths · Avg: 9.5/10
P/E RatioValuation
8.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.5%10/10

Strong operational efficiency at 33.5%

EPS GrowthGrowth
102.5%10/10

Earnings expanding 102.5% YoY

Profit MarginProfitability
24.8%9/10

Keeps 25 of every $100 in revenue as profit

Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

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

CBNK2 concerns · Avg: 2.5/10
Market CapQuality
$474.48M3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-29.23M2/10

Negative free cash flow — burning cash

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

2.8% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : CBNK

The strongest argument for CBNK centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 24.8% and operating margin at 33.5%. Revenue growth of 15.5% demonstrates continued momentum.

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 : CBNK

The primary concerns for CBNK are Market Cap, Free Cash Flow.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Key Dynamics to Monitor

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

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

CBNK is growing revenue faster at 15.5% — 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 69/100), backed by strong 32.3% margins and 11.0% revenue growth. CBNK offers better value entry with a 80.3% margin of safety. 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.

Capital Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Capital Bancorp, Inc. is the banking holding company for Capital Bank, NA that offers various banking products and services to businesses, nonprofits and entrepreneurs in the United States. The company is headquartered in Rockville, Maryland.

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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