WallStSmart

Itau Unibanco Banco Holding SA (ITUB)vsVersaBank (VBNK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Itau Unibanco Banco Holding SA generates 100141% more annual revenue ($138.19B vs $137.85M). ITUB leads profitability with a 33.3% profit margin vs 22.0%. ITUB trades at a lower P/E of 10.4x. 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: 3.3
Piotroski: 3/9

VBNK

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 5.3Quality: 4.5
Piotroski: 2/9Altman Z: -0.72

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITUB6 strengths · Avg: 9.3/10
P/E RatioValuation
10.4x10/10

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
$90.71B9/10

Large-cap with strong market position

Return on EquityProfitability
21.2%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

VBNK5 strengths · Avg: 8.4/10
Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Revenue GrowthGrowth
29.5%8/10

Revenue surging 29.5% year-over-year

Areas to Watch

ITUB4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

Free Cash FlowQuality
$-5.87B2/10

Negative free cash flow — burning cash

Debt/EquityHealth
4.991/10

Elevated debt levels

VBNK4 concerns · Avg: 3.3/10
P/E RatioValuation
29.1x4/10

Moderate valuation

Market CapQuality
$619.28M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

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 1.44 suggests the stock is reasonably priced for its growth.

Bull Case : VBNK

The strongest argument for VBNK centers on Profit Margin, Debt/Equity, Price/Book. Profitability is solid with margins at 22.0% and operating margin at 27.4%. Revenue growth of 29.5% demonstrates continued momentum.

Bear Case : ITUB

The primary concerns for ITUB are Piotroski F-Score, Revenue Growth, Free Cash Flow. Debt-to-equity of 4.99 is elevated, increasing financial risk.

Bear Case : VBNK

The primary concerns for VBNK are P/E Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

ITUB profiles as a declining stock while VBNK is a growth play — different risk/reward profiles.

VBNK carries more volatility with a beta of 1.14 — expect wider price swings.

VBNK is growing revenue faster at 29.5% — sustainability is the question.

VBNK generates stronger free cash flow (-50M), providing more financial flexibility.

Bottom Line

ITUB scores higher overall (74/100 vs 52/100), backed by strong 33.3% margins. 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.

VersaBank

FINANCIAL SERVICES · BANKS - REGIONAL · USA

VersaBank (VBNK) is a pioneering digital bank headquartered in London, Ontario, distinguished for its innovative technology-driven banking solutions. By leveraging a cutting-edge cloud-based infrastructure, VersaBank enhances operational efficiency while ensuring robust cybersecurity measures, crucial in today's increasingly digital financial landscape. Focusing on both commercial and residential lending, the bank is well-positioned to adapt to evolving consumer demands and capitalize on the ongoing digital transformation in the financial sector. As a leader in Canadian digital banking, VersaBank is strategically equipped to navigate complex markets and unlock new growth opportunities.

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