WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 1933% more annual revenue ($26.65B vs $1.31B). PB leads profitability with a 40.4% profit margin vs 29.3%. USB appears more attractively valued with a PEG of 1.83. USB earns a higher WallStSmart Score of 71/100 (B).

PB

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 5.0Quality: 5.0
Piotroski: 6/9Altman Z: -0.12

USB

Strong Buy

71

out of 100

Grade: B

Growth: 6.0Profit: 7.5Value: 6.3Quality: 3.5
Piotroski: 4/9Altman Z: -0.36

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PB5 strengths · Avg: 9.2/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
40.4%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
55.6%10/10

Strong operational efficiency at 55.6%

P/E RatioValuation
13.2x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
19.9%8/10

19.9% revenue growth

USB6 strengths · Avg: 9.3/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
37.8%10/10

Strong operational efficiency at 37.8%

Market CapQuality
$84.69B9/10

Large-cap with strong market position

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

Free Cash FlowQuality
$1.34B8/10

Generating 1.3B in free cash flow

Areas to Watch

PB4 concerns · Avg: 2.3/10
Return on EquityProfitability
6.4%3/10

ROE of 6.4% — below average capital efficiency

PEG RatioValuation
4.262/10

Expensive relative to growth rate

EPS GrowthGrowth
-15.1%2/10

Earnings declined 15.1%

Altman Z-ScoreHealth
-0.122/10

Distress zone — elevated risk

USB4 concerns · Avg: 3.3/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Debt/EquityHealth
1.203/10

Elevated debt levels

Altman Z-ScoreHealth
-0.362/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : PB

The strongest argument for PB centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 40.4% and operating margin at 55.6%. Revenue growth of 19.9% demonstrates continued momentum.

Bull Case : USB

The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 29.3% and operating margin at 37.8%.

Bear Case : PB

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

Bear Case : USB

The primary concerns for USB are PEG Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

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

USB carries more volatility with a beta of 1.02 — expect wider price swings.

PB is growing revenue faster at 19.9% — sustainability is the question.

USB generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

USB scores higher overall (71/100 vs 61/100), backed by strong 29.3% 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.

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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