WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsLithia Motors Inc (LAD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 266% more annual revenue ($138.19B vs $37.73B). ITUB leads profitability with a 33.3% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. 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

LAD

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 9.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.55
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITUB.

LADUndervalued (+53.9%)

Margin of Safety

+53.9%

Fair Value

$694.31

Current Price

$293.99

$400.32 discount

UndervaluedFair: $694.31Overvalued

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

LAD3 strengths · Avg: 9.3/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.648/10

Growing faster than its price suggests

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

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : LAD

The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.64 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 : LAD

The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

LAD carries more volatility with a beta of 1.28 — expect wider price swings.

LAD is growing revenue faster at 1.0% — sustainability is the question.

LAD generates stronger free cash flow (-206M), providing more financial flexibility.

Bottom Line

ITUB scores higher overall (74/100 vs 55/100), backed by strong 33.3% margins. LAD offers better value entry with a 53.9% 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.

Lithia Motors Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Lithia Motors, Inc. is an automobile retailer in the United States. The company is headquartered in Medford, Oregon.

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