First Merchants Corporation (FRME)vsItau Unibanco Banco Holding SA (ITUB)
FRME
First Merchants Corporation
$38.18
+0.53%
FINANCIAL SERVICES · Cap: $2.41B
ITUB
Itau Unibanco Banco Holding SA
$8.21
+1.99%
FINANCIAL SERVICES · Cap: $86.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Itau Unibanco Banco Holding SA generates 21553% more annual revenue ($138.95B vs $641.70M). FRME leads profitability with a 35.2% profit margin vs 32.3%. ITUB appears more attractively valued with a PEG of 1.30. ITUB earns a higher WallStSmart Score of 76/100 (B+).
FRME
Buy64
out of 100
Grade: C+
ITUB
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.4%
Fair Value
$26.38
Current Price
$38.18
$11.80 premium
Margin of Safety
-10.1%
Fair Value
$8.69
Current Price
$8.21
$0.48 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 42.7%
Attractively priced relative to earnings
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 37.3%
Generating 45.0B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Areas to Watch
Revenue declined 4.6%
Earnings declined 10.9%
Distress zone — elevated risk
2.8% earnings growth
Comparative Analysis Report
WallStSmart ResearchBull Case : FRME
The strongest argument for FRME centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 35.2% and operating margin at 42.7%. PEG of 1.40 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 : FRME
The primary concerns for FRME are Revenue Growth, EPS Growth, Altman Z-Score.
Bear Case : ITUB
The primary concerns for ITUB are EPS Growth.
Key Dynamics to Monitor
FRME profiles as a declining stock while ITUB is a mature play — different risk/reward profiles.
FRME carries more volatility with a beta of 0.91 — 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.
Bottom Line
ITUB scores higher overall (76/100 vs 64/100), 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.
First Merchants Corporation
FINANCIAL SERVICES · BANKS - REGIONAL · USA
First Merchants Corporation is the financial holding company for First Merchants Bank providing community banking services. The company is headquartered in Muncie, Indiana.
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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