WallStSmart

Prosperity Bancshares Inc (PB)vsU.S. Bancorp (USB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 2009% more annual revenue ($26.35B vs $1.25B). PB leads profitability with a 43.4% profit margin vs 28.7%. USB appears more attractively valued with a PEG of 1.80. USB earns a higher WallStSmart Score of 75/100 (B).

PB

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 7.3Quality: 5.8
Piotroski: 5/9

USB

Strong Buy

75

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.3
Piotroski: 5/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PBUndervalued (+37.3%)

Margin of Safety

+37.3%

Fair Value

$121.26

Current Price

$66.20

$55.06 discount

UndervaluedFair: $121.26Overvalued
USBUndervalued (+75.8%)

Margin of Safety

+75.8%

Fair Value

$214.00

Current Price

$51.89

$162.11 discount

UndervaluedFair: $214.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Market CapQuality
$81.01B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
24.7%8/10

Earnings expanding 24.7% YoY

Areas to Watch

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

USB2 concerns · Avg: 3.0/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : USB

The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 39.3%.

Bear Case : PB

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

Bear Case : USB

The primary concerns for USB are PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

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

USB carries more volatility with a beta of 1.04 — expect wider price swings.

USB is growing revenue faster at 5.3% — sustainability is the question.

USB generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

USB scores higher overall (75/100 vs 61/100), backed by strong 28.7% margins. 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.

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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U.S. Bancorp

FINANCIAL SERVICES · BANKS - REGIONAL · USA

U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.

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