WallStSmart

Farmers & Merchants Bancorp Inc (FMAO)vsItau Unibanco Banco Holding SA (ITUB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 116292% more annual revenue ($138.95B vs $119.38M). ITUB leads profitability with a 32.3% profit margin vs 27.9%. ITUB trades at a lower P/E of 10.2x. ITUB earns a higher WallStSmart Score of 76/100 (B+).

FMAO

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 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

FMAOUndervalued (+69.7%)

Margin of Safety

+69.7%

Fair Value

$91.56

Current Price

$25.10

$66.46 discount

UndervaluedFair: $91.56Overvalued
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

FMAO5 strengths · Avg: 9.4/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
44.8%10/10

Strong operational efficiency at 44.8%

Profit MarginProfitability
27.9%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
20.0%8/10

Revenue surging 20.0% year-over-year

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

FMAO1 concerns · Avg: 3.0/10
Market CapQuality
$343.89M3/10

Smaller company, higher risk/reward

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

2.8% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : FMAO

The strongest argument for FMAO centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 27.9% and operating margin at 44.8%. Revenue growth of 20.0% 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 : FMAO

The primary concerns for FMAO are Market Cap.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Key Dynamics to Monitor

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

FMAO carries more volatility with a beta of 0.84 — expect wider price swings.

FMAO is growing revenue faster at 20.0% — 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 65/100), backed by strong 32.3% margins and 11.0% revenue growth. FMAO offers better value entry with a 69.7% 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.

Farmers & Merchants Bancorp Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Farmers & Merchants Bancorp, Inc. is the banking holding company for The Farmers & Merchants State Bank providing commercial banking services to individuals and small businesses in Northwest Ohio and Northeast Indiana. The company is headquartered in Archbold, Ohio.

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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