WallStSmart

First Merchants Corporation (FRME)vsItau Unibanco Banco Holding SA (ITUB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 21156% more annual revenue ($143.71B vs $676.12M). ITUB leads profitability with a 32.6% profit margin vs 29.2%. ITUB appears more attractively valued with a PEG of 1.33. FRME earns a higher WallStSmart Score of 78/100 (B+).

FRME

Strong Buy

78

out of 100

Grade: B+

Growth: 7.3Profit: 7.0Value: 6.3Quality: 5.0
Piotroski: 6/9Altman Z: -0.11

ITUB

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 6.3Quality: 3.3
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRME5 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
45.0%10/10

Strong operational efficiency at 45.0%

Profit MarginProfitability
29.2%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
12.7x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
21.0%8/10

Revenue surging 21.0% year-over-year

ITUB6 strengths · Avg: 9.3/10
Profit MarginProfitability
32.6%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
39.1%10/10

Strong operational efficiency at 39.1%

Free Cash FlowQuality
$70.94B10/10

Generating 70.9B in free cash flow

Market CapQuality
$104.05B9/10

Large-cap with strong market position

Return on EquityProfitability
21.6%9/10

Every $100 of equity generates 22 in profit

P/E RatioValuation
12.1x8/10

Attractively priced relative to earnings

Areas to Watch

FRME2 concerns · Avg: 2.5/10
Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

Altman Z-ScoreHealth
-0.112/10

Distress zone — elevated risk

ITUB2 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
4.711/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : FRME

The strongest argument for FRME centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 29.2% and operating margin at 45.0%. Revenue growth of 21.0% demonstrates continued momentum.

Bull Case : ITUB

The strongest argument for ITUB centers on Profit Margin, Operating Margin, Free Cash Flow. Profitability is solid with margins at 32.6% and operating margin at 39.1%. Revenue growth of 17.5% demonstrates continued momentum.

Bear Case : FRME

The primary concerns for FRME are Return on Equity, Altman Z-Score.

Bear Case : ITUB

The primary concerns for ITUB are Piotroski F-Score, Debt/Equity. Debt-to-equity of 4.71 is elevated, increasing financial risk.

Key Dynamics to Monitor

FRME carries more volatility with a beta of 0.88 — expect wider price swings.

FRME is growing revenue faster at 21.0% — sustainability is the question.

ITUB generates stronger free cash flow (70.9B), providing more financial flexibility.

Monitor BANKS - REGIONAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FRME scores higher overall (78/100 vs 77/100), backed by strong 29.2% margins and 21.0% 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.

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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