SAN vs. ITUB: Which Stock Is the Better Value Option?

Core Viewpoint - Investors are evaluating Banco Santander (SAN) and Banco Itau (ITUB) to determine which stock offers better value opportunities at present [1]. Group 1: Zacks Rank and Earnings Outlook - Banco Santander has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Banco Itau has a Zacks Rank of 4 (Sell) [3]. - The improving earnings outlook for Banco Santander suggests a favorable investment opportunity compared to Banco Itau [7]. Group 2: Valuation Metrics - Banco Santander has a forward P/E ratio of 7.74, whereas Banco Itau has a forward P/E ratio of 9.09 [5]. - The PEG ratio for Banco Santander is 0.90, indicating better value relative to its expected earnings growth compared to Banco Itau's PEG ratio of 1.11 [5]. - Banco Santander's P/B ratio is 0.93, significantly lower than Banco Itau's P/B ratio of 1.62, suggesting that SAN is undervalued compared to ITUB [6]. - Based on these valuation metrics, Banco Santander holds a Value grade of B, while Banco Itau has a Value grade of F [6].