Financial Contrast: Itau Unibanco (ITUB) and Its Competitors

Itau Unibanco (NYSE:ITUB) is one of 919 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare Itau Unibanco to similar companies based on the strength of its institutional ownership, valuation, profitability, risk, dividends, analyst recommendations and earnings.

Earnings and Valuation

This table compares Itau Unibanco and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Itau Unibanco	$173.14 billion	$8.03 billion	9.44
Itau Unibanco Competitors	$222.42 billion	$2.42 billion	21.19

Itau Unibanco’s peers have higher revenue, but lower earnings than Itau Unibanco. Itau Unibanco is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Itau Unibanco and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itau Unibanco	0	2	3	0	2.60
Itau Unibanco Competitors	7484	30227	27809	1478	2.35

Itau Unibanco currently has a consensus price target of $9.87, indicating a potential upside of 32.35%. As a group, “Banks” companies have a potential upside of 15.13%. Given Itau Unibanco’s stronger consensus rating and higher probable upside, analysts clearly believe Itau Unibanco is more favorable than its peers.

Dividends

Itau Unibanco pays an annual dividend of $0.03 per share and has a dividend yield of 0.4%. Itau Unibanco pays out 3.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.1% and pay out 28.9% of their earnings in the form of a dividend.

Volatility & Risk

Itau Unibanco has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Itau Unibanco’s peers have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Institutional & Insider Ownership

47.9% of shares of all “Banks” companies are held by institutional investors. 0.6% of Itau Unibanco shares are held by insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Itau Unibanco and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Itau Unibanco	26.19%	22.06%	1.55%
Itau Unibanco Competitors	15.65%	9.44%	0.93%

Summary

Itau Unibanco beats its peers on 8 of the 15 factors compared.

About Itau Unibanco

Itaú Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. The company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It offers current account; loans; credit and debit cards; investment and commercial banking services; real estate lending services; financing and investment services; economic, financial and brokerage advisory; and leasing and foreign exchange services. The company also provides property and casualty insurance products covering loss, damage, or liabilities for assets or persons, as well as life insurance products covering death and personal accident. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies, as well as middle-market companies and high net worth clients. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was incorporated in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. operates as a subsidiary of IUPAR – Itaú Unibanco Participações S.A.