WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsProsperity Bancshares Inc (PB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 11018% more annual revenue ($138.95B vs $1.25B). PB leads profitability with a 43.4% profit margin vs 32.3%. 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

PB

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 7.3Quality: 5.8
Piotroski: 5/9
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
PBUndervalued (+37.3%)

Margin of Safety

+37.3%

Fair Value

$121.26

Current Price

$66.20

$55.06 discount

UndervaluedFair: $121.26Overvalued

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

PB5 strengths · Avg: 9.8/10
P/E RatioValuation
11.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Profit MarginProfitability
43.4%10/10

Keeps 43 of every $100 in revenue as profit

Operating MarginProfitability
58.2%10/10

Strong operational efficiency at 58.2%

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

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

2.8% earnings growth

PB3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Return on EquityProfitability
7.2%3/10

ROE of 7.2% — below average capital efficiency

PEG RatioValuation
4.262/10

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 : PB

The strongest argument for PB centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 43.4% and operating margin at 58.2%.

Bear Case : ITUB

The primary concerns for ITUB are EPS Growth.

Bear Case : PB

The primary concerns for PB are Revenue Growth, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

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

PB carries more volatility with a beta of 0.67 — 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 61/100), backed by strong 32.3% margins and 11.0% revenue growth. PB offers better value entry with a 37.3% 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.

Prosperity Bancshares Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Prosperity Bancshares, Inc. is a banking holding company for Prosperity Bank providing retail and commercial banking services to businesses and consumers. The company is headquartered in Houston, Texas.

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