WallStSmart

U.S. Bancorp (USB)vsVersaBank (VBNK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

U.S. Bancorp generates 19230% more annual revenue ($26.65B vs $137.85M). USB leads profitability with a 29.3% profit margin vs 22.0%. USB trades at a lower P/E of 12.8x. USB earns a higher WallStSmart Score of 69/100 (B-).

USB

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: -0.36

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

USB6 strengths · Avg: 8.7/10
Operating MarginProfitability
37.8%10/10

Strong operational efficiency at 37.8%

Market CapQuality
$94.88B9/10

Large-cap with strong market position

Profit MarginProfitability
29.3%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.34B8/10

Generating 1.3B in free cash flow

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

USB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.234/10

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

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 : USB

The strongest argument for USB centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 29.3% and operating margin at 37.8%.

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 : USB

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

Bear Case : VBNK

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

Key Dynamics to Monitor

USB profiles as a value 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.

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

Bottom Line

USB scores higher overall (69/100 vs 52/100), 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.

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.

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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