WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsPreferred Bank (PFBC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 50037% more annual revenue ($143.71B vs $286.64M). PFBC leads profitability with a 47.2% profit margin vs 32.6%. PFBC appears more attractively valued with a PEG of 0.94. ITUB earns a higher WallStSmart Score of 77/100 (B+).

ITUB

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 7.0Quality: 3.3
Piotroski: 3/9

PFBC

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 7.7Quality: 6.5
Piotroski: 4/9Altman Z: 0.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITUB6 strengths · Avg: 9.7/10
P/E RatioValuation
10.0x10/10

Attractively priced relative to earnings

Profit MarginProfitability
32.6%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
39.1%10/10

Strong operational efficiency at 39.1%

Free Cash FlowQuality
$70.94B10/10

Generating 70.9B in free cash flow

Market CapQuality
$91.48B9/10

Large-cap with strong market position

Return on EquityProfitability
21.6%9/10

Every $100 of equity generates 22 in profit

PFBC5 strengths · Avg: 9.2/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Profit MarginProfitability
47.2%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
67.4%10/10

Strong operational efficiency at 67.4%

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

ITUB2 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
4.711/10

Elevated debt levels

PFBC3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Market CapQuality
$1.21B3/10

Smaller company, higher risk/reward

Altman Z-ScoreHealth
0.502/10

Distress zone — elevated risk

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 32.6% and operating margin at 39.1%. Revenue growth of 17.5% demonstrates continued momentum.

Bull Case : PFBC

The strongest argument for PFBC centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 47.2% and operating margin at 67.4%. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bear Case : ITUB

The primary concerns for ITUB are Piotroski F-Score, Debt/Equity. Debt-to-equity of 4.71 is elevated, increasing financial risk.

Bear Case : PFBC

The primary concerns for PFBC are Revenue Growth, Market Cap, Altman Z-Score.

Key Dynamics to Monitor

ITUB profiles as a growth stock while PFBC is a value play — different risk/reward profiles.

PFBC carries more volatility with a beta of 0.54 — expect wider price swings.

ITUB is growing revenue faster at 17.5% — sustainability is the question.

ITUB generates stronger free cash flow (70.9B), providing more financial flexibility.

Bottom Line

ITUB scores higher overall (77/100 vs 69/100), backed by strong 32.6% margins and 17.5% revenue growth. 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.

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.

Preferred Bank

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Preferred Bank offers a variety of commercial banking products and services to small and medium-sized businesses and their real estate owners, entrepreneurs, developers and investors, professionals, and high-net-worth individuals in the United States. The company is headquartered in Los Angeles, California.

Visit Website →

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