WallStSmart

First Merchants Corporation Depository Shares (FRMEP)vsItau Unibanco Banco Holding SA (ITUB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 22279% more annual revenue ($143.71B vs $642.19M). ITUB leads profitability with a 32.6% profit margin vs 29.0%. FRMEP trades at a lower P/E of 6.6x. ITUB earns a higher WallStSmart Score of 77/100 (B+).

FRMEP

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 7.0Value: 6.7Quality: 4.5
Piotroski: 6/9Altman Z: -0.11

ITUB

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 3.3
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRMEP4 strengths · Avg: 9.8/10
P/E RatioValuation
6.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Operating MarginProfitability
34.3%10/10

Strong operational efficiency at 34.3%

Profit MarginProfitability
29.0%9/10

Keeps 29 of every $100 in revenue as profit

ITUB6 strengths · Avg: 9.7/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

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
$90.16B9/10

Large-cap with strong market position

Return on EquityProfitability
21.6%9/10

Every $100 of equity generates 22 in profit

Areas to Watch

FRMEP4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

EPS GrowthGrowth
-28.7%2/10

Earnings declined 28.7%

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 : FRMEP

The strongest argument for FRMEP centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 29.0% and operating margin at 34.3%.

Bull Case : ITUB

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

Bear Case : FRMEP

The primary concerns for FRMEP are Revenue Growth, Return on Equity, EPS Growth.

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

FRMEP profiles as a value stock while ITUB is a growth play — different risk/reward profiles.

FRMEP carries more volatility with a beta of 0.85 — expect wider price swings.

ITUB is growing revenue faster at 17.5% — sustainability is the question.

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

Bottom Line

ITUB scores higher overall (77/100 vs 43/100), backed by strong 32.6% margins and 17.5% revenue growth. Both earn "Strong Buy" and "Hold" 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 Depository Shares

FINANCIAL SERVICES · BANKS - REGIONAL · USA

First Merchants Corporation Depository Shares (FRMEP) represent a robust investment opportunity in the Midwest's financial services landscape, underpinned by a strong regional banking institution. The company delivers a wide array of financial services, encompassing commercial banking, consumer lending, and wealth management, tailored to meet the diverse needs of its clientele. With a proactive approach to community engagement and a commitment to sustainable growth, First Merchants emphasizes enhancing shareholder value while ensuring resilience against market fluctuations. This strategic orientation positions First Merchants as an attractive option for institutional investors aiming for dependable returns in a dynamic economic environment.

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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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