Workflow
BMA vs. ITUB: Which Stock Is the Better Value Option?
ZACKSยท2025-06-10 16:46

Core Viewpoint - Investors in the Banks - Foreign sector should consider Banco Macro (BMA) and Banco Itau (ITUB) for potential undervalued stock opportunities [1] Group 1: Company Rankings and Valuation Metrics - Banco Macro has a Zacks Rank of 1 (Strong Buy), while Banco Itau has a Zacks Rank of 3 (Hold), indicating a more favorable earnings estimate revision trend for BMA [3] - BMA has a forward P/E ratio of 7.94, compared to ITUB's forward P/E of 9.36, suggesting BMA is more attractively priced [5] - The PEG ratio for BMA is 0.30, indicating strong expected earnings growth relative to its price, while ITUB's PEG ratio is 1.15 [5] - BMA's P/B ratio is 1.21, which is lower than ITUB's P/B ratio of 1.96, further supporting BMA's valuation advantage [6] Group 2: Value Grades - Based on the valuation metrics, BMA earns a Value grade of B, while ITUB receives a Value grade of D, highlighting BMA's superior value proposition [6][7]