Fifth Third Bancorp (FITB) vs Itau Unibanco Holding S.A. (ITUB)

Fifth Third Bancorp and Itau Unibanco Holding S.A. are both Banks Regional companies. Fifth Third Bancorp and Itau Unibanco Holding S.A. are of similar size ($46.7B and $43.5B). Itau Unibanco Holding S.A. trades at the lower P/E: 10.3× against 17.6×. Itau Unibanco Holding S.A. grew revenue faster over the last twelve months: 29.0% against 14.4%. Fifth Third Bancorp has the higher net margin (14.8% vs 12.1%) and the lower return on invested capital (7.05% vs 12.7%). Both pay a dividend; Itau Unibanco Holding S.A. yields more (6.39% vs 4.28%). Across the 20 metrics below, Itau Unibanco Holding S.A. leads on 15 and Fifth Third Bancorp on 5.

Valuation

Metric FITB ITUB Banks Regional median
P/E 17.60 10.34 12.15
P/S 3.19 1.22 2.37
P/B 1.47 1.98 1.21
Price to free cash flow 16.37 3.08 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.66 1.30 2.27
Earnings yield 5.68% 9.67% 8.11%
Free cash flow yield 6.11% 32.49% 8.98%

Profitability

Metric FITB ITUB Banks Regional median
Gross margin 72.22% 44.92% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 14.78% 12.12% 18.66%
Free cash flow margin 19.47% 39.73% 21.18%
Return on equity 8.57% 21.16% 10.64%
Return on assets 0.86% 1.55% 1.13%
Return on invested capital 7.05% 12.72% 8.33%

Growth

Metric FITB ITUB Banks Regional median
Revenue growth (TTM) 14.41% 28.98% 6.61%
EPS growth (last fiscal year) 12.42% 5.94% —
Revenue growth, 5-year CAGR 9.02% 15.52% 12.30%
Net income growth, 5-year CAGR 12.42% 16.99% 9.71%

Health

Metric FITB ITUB Banks Regional median
Debt to equity 0.51 2.44 0.22
Current ratio 0.84 1.08 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FITB ITUB Banks Regional median
Dividend yield 4.28% 6.39% 3.75%
Payout ratio 0.38 0.47 0.27

Size

Metric FITB ITUB Banks Regional median
Market cap 46.67b 43.50b 921.07m

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