WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsNewtek Business Services Corp (NEWT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 36147% more annual revenue ($138.95B vs $383.33M). ITUB leads profitability with a 32.3% profit margin vs 15.8%. ITUB appears more attractively valued with a PEG of 1.30. ITUB earns a higher WallStSmart Score of 76/100 (B+).

ITUB

Strong Buy

76

out of 100

Grade: B+

Growth: 6.0Profit: 8.0Value: 8.0Quality: 5.0

NEWT

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 6.0Quality: 4.0
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ITUBOvervalued (-10.1%)

Margin of Safety

-10.1%

Fair Value

$8.69

Current Price

$8.21

$0.48 premium

UndervaluedFair: $8.69Overvalued
NEWTUndervalued (+10.0%)

Margin of Safety

+10.0%

Fair Value

$14.82

Current Price

$11.22

$3.60 discount

UndervaluedFair: $14.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

NEWT3 strengths · Avg: 10.0/10
P/E RatioValuation
5.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Operating MarginProfitability
55.6%10/10

Strong operational efficiency at 55.6%

Areas to Watch

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

2.8% earnings growth

NEWT4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

Market CapQuality
$331.34M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.202/10

Expensive relative to growth rate

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 32.3% and operating margin at 37.3%. Revenue growth of 11.0% demonstrates continued momentum.

Bull Case : NEWT

The strongest argument for NEWT centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 15.8% and operating margin at 55.6%.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Bear Case : NEWT

The primary concerns for NEWT are Revenue Growth, Market Cap, Piotroski F-Score. Debt-to-equity of 5.64 is elevated, increasing financial risk.

Key Dynamics to Monitor

ITUB profiles as a mature stock while NEWT is a value play — different risk/reward profiles.

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

ITUB is growing revenue faster at 11.0% — 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 64/100), backed by strong 32.3% margins and 11.0% revenue growth. 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.

Newtek Business Services Corp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Newtek Business Services Corp (NEWT) is a leading provider of integrated business solutions designed specifically for small to medium-sized enterprises (SMBs) throughout the United States. The company offers a diverse suite of services, including payment processing, business lending, and advanced technological solutions, all aimed at enhancing operational efficiency and driving growth for its clients. By functioning as a comprehensive resource, Newtek positions itself as a critical partner in the success of SMBs, emphasizing exceptional customer service and strategic collaborations to help clients thrive in a competitive marketplace. With a strong focus on innovation and long-term relationships, Newtek plays a pivotal role in empowering its clients to adapt and grow.

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