WallStSmart

Heritage Financial Corporation (HFWA)vsItau Unibanco Banco Holding SA (ITUB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 56806% more annual revenue ($138.95B vs $244.17M). ITUB leads profitability with a 32.3% profit margin vs 27.7%. ITUB appears more attractively valued with a PEG of 1.30. ITUB earns a higher WallStSmart Score of 76/100 (B+).

HFWA

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 7.0Value: 10.0Quality: 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

HFWAUndervalued (+69.7%)

Margin of Safety

+69.7%

Fair Value

$91.73

Current Price

$25.58

$66.15 discount

UndervaluedFair: $91.73Overvalued
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

HFWA6 strengths · Avg: 9.2/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.8%10/10

Strong operational efficiency at 39.8%

EPS GrowthGrowth
90.8%10/10

Earnings expanding 90.8% YoY

Profit MarginProfitability
27.7%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% 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

HFWA3 concerns · Avg: 3.3/10
PEG RatioValuation
2.134/10

Expensive relative to growth rate

Market CapQuality
$1.04B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

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

2.8% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : HFWA

The strongest argument for HFWA centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 27.7% and operating margin at 39.8%. Revenue growth of 20.2% 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 : HFWA

The primary concerns for HFWA are PEG Ratio, Market Cap, Return on Equity.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Key Dynamics to Monitor

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

HFWA carries more volatility with a beta of 0.49 — expect wider price swings.

HFWA is growing revenue faster at 20.2% — 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 71/100), backed by strong 32.3% margins and 11.0% revenue growth. HFWA 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.

Heritage Financial Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Heritage Financial Corporation is the banking holding company for Heritage Bank providing various financial services to small and medium-sized businesses and individuals in the United States. The company is headquartered in Olympia, Washington.

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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