WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsCarMax Inc (KMX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 398% more annual revenue ($138.19B vs $27.76B). ITUB leads profitability with a 33.3% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. ITUB earns a higher WallStSmart Score of 74/100 (B).

ITUB

Strong Buy

74

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 7.0Quality: 5.0

KMX

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 8.7Quality: 4.5
Piotroski: 3/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITUB.

KMXUndervalued (+83.0%)

Margin of Safety

+83.0%

Fair Value

$270.07

Current Price

$40.34

$229.73 discount

UndervaluedFair: $270.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITUB6 strengths · Avg: 9.3/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Profit MarginProfitability
33.3%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
33.1%10/10

Strong operational efficiency at 33.1%

Market CapQuality
$90.15B9/10

Large-cap with strong market position

Return on EquityProfitability
21.8%9/10

Every $100 of equity generates 22 in profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

KMX2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Areas to Watch

ITUB2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

Free Cash FlowQuality
$-5.87B2/10

Negative free cash flow — burning cash

KMX4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Return on EquityProfitability
4.1%3/10

ROE of 4.1% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : ITUB

The strongest argument for ITUB centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 33.3% and operating margin at 33.1%. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bull Case : KMX

The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.

Bear Case : ITUB

The primary concerns for ITUB are Revenue Growth, Free Cash Flow.

Bear Case : KMX

The primary concerns for KMX are Altman Z-Score, Return on Equity, Profit Margin. Debt-to-equity of 2.75 is elevated, increasing financial risk. Thin 0.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

ITUB profiles as a declining stock while KMX is a value play — different risk/reward profiles.

KMX carries more volatility with a beta of 1.18 — expect wider price swings.

KMX is growing revenue faster at -1.2% — sustainability is the question.

KMX generates stronger free cash flow (-687M), providing more financial flexibility.

Bottom Line

ITUB scores higher overall (74/100 vs 52/100), backed by strong 33.3% margins. KMX offers better value entry with a 83.0% margin of safety. 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.

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.

CarMax Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

CarMax is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance.

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