Itaú Unibanco (NYSE:ITUB) versus Amalgamated Financial (NASDAQ:AMAL) Head to Head Review

Itaú Unibanco (NYSE:ITUBGet Rating) and Amalgamated Financial (NASDAQ:AMALGet Rating) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Profitability

This table compares Itaú Unibanco and Amalgamated Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Itaú Unibanco 12.84% 16.01% 1.26%
Amalgamated Financial 25.03% 10.14% 0.79%

Volatility and Risk

Itaú Unibanco has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Amalgamated Financial has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Earnings & Valuation

This table compares Itaú Unibanco and Amalgamated Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Itaú Unibanco $36.27 billion 1.23 $4.96 billion $0.53 8.60
Amalgamated Financial $208.91 million 3.34 $52.94 million $1.74 13.02

Itaú Unibanco has higher revenue and earnings than Amalgamated Financial. Itaú Unibanco is trading at a lower price-to-earnings ratio than Amalgamated Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Itaú Unibanco pays an annual dividend of $0.04 per share and has a dividend yield of 0.9%. Amalgamated Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. Itaú Unibanco pays out 7.5% of its earnings in the form of a dividend. Amalgamated Financial pays out 18.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent ratings for Itaú Unibanco and Amalgamated Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Itaú Unibanco 0 1 1 0 2.50
Amalgamated Financial 0 1 3 0 2.75

Itaú Unibanco presently has a consensus price target of $4.75, suggesting a potential upside of 4.17%. Amalgamated Financial has a consensus price target of $21.25, suggesting a potential downside of 6.18%. Given Itaú Unibanco’s higher probable upside, analysts clearly believe Itaú Unibanco is more favorable than Amalgamated Financial.

Institutional and Insider Ownership

8.7% of Itaú Unibanco shares are held by institutional investors. Comparatively, 37.3% of Amalgamated Financial shares are held by institutional investors. 2.1% of Amalgamated Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Amalgamated Financial beats Itaú Unibanco on 9 of the 16 factors compared between the two stocks.

About Itaú Unibanco

(Get Rating)

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 and Corporation. It offers various deposit products, as well as loans and credit cards; investment and commercial banking services; real estate lending services; financing and investment services; 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; and reinsurance products. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies. 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. is a subsidiary of IUPAR – Itaú Unibanco Participações S.A.

About Amalgamated Financial

(Get Rating)

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; and retail loans, such as residential real estate, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. The company operates through its three branch offices across New York City, one branch office in Washington, D.C., one branch office in San Francisco, one commercial office in Boston, and digital banking platform. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.

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