Fifth Third Bancorp (FITB) vs Nu Holdings Ltd. (NU)

Fifth Third Bancorp and Nu Holdings Ltd. are both Banks Regional companies. Nu Holdings Ltd. is the larger, with a market value of $65.9B against $46.7B — 1.4× the size. Fifth Third Bancorp trades at the lower P/E: 17.6× against 18.4×. Nu Holdings Ltd. grew revenue faster over the last twelve months: 50.5% against 14.4%. Nu Holdings Ltd. has the higher net margin (18.7% vs 14.8%) and the higher return on invested capital (62.5% vs 7.05%). Across the 18 metrics below, Fifth Third Bancorp leads on 10 and Nu Holdings Ltd. on 8.

Valuation

Metric FITB NU Banks Regional median
P/E 17.60 18.36 12.15
P/S 3.19 3.41 2.37
P/B 1.47 4.98 1.21
Price to free cash flow 16.37 n/m 10.80
EV/EBITDA n/m 70.20 —
EV/Sales 2.66 2.95 2.27
Earnings yield 5.68% 5.45% 8.11%
Free cash flow yield 6.11% (2.53%) 8.98%

Profitability

Metric FITB NU Banks Regional median
Gross margin 72.22% 71.67% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 14.78% 18.65% 18.66%
Free cash flow margin 19.47% (8.63%) 21.18%
Return on equity 8.57% 31.60% 10.64%
Return on assets 0.86% 4.96% 1.13%
Return on invested capital 7.05% 62.53% 8.33%

Growth

Metric FITB NU Banks Regional median
Revenue growth (TTM) 14.41% 50.52% 6.61%
EPS growth (last fiscal year) 12.42% 45.00% —
Revenue growth, 5-year CAGR 9.02% 84.54% 12.30%
Net income growth, 5-year CAGR 12.42% 0.00% 9.71%

Health

Metric FITB NU Banks Regional median
Debt to equity 0.51 0.35 0.22
Current ratio 0.84 0.55 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FITB NU Banks Regional median
Dividend yield 4.28% — 3.75%
Payout ratio 0.38 0.00 0.27

Size

Metric FITB NU Banks Regional median
Market cap 46.67b 65.90b 921.07m

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