Itau Unibanco (NYSE: ITUB) and Equity BancShares (NASDAQ:EQBK) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares Itau Unibanco and Equity BancShares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Itau Unibanco $46.19 billion 1.93 $6.67 billion $1.15 11.90
Equity BancShares $72.26 million 7.18 $9.37 million $1.37 25.96

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

Profitability

This table compares Itau Unibanco and Equity BancShares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Itau Unibanco 18.82% 17.81% 1.81%
Equity BancShares 15.94% 7.71% 0.91%

Dividends

Itau Unibanco pays an annual dividend of $0.05 per share and has a dividend yield of 0.4%. Equity BancShares does not pay a dividend. Itau Unibanco pays out 4.3% of its earnings in the form of a dividend.

Institutional & Insider Ownership

4.7% of Itau Unibanco shares are owned by institutional investors. Comparatively, 51.8% of Equity BancShares shares are owned by institutional investors. 14.9% of Equity BancShares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Itau Unibanco and Equity BancShares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Itau Unibanco 0 3 1 0 2.25
Equity BancShares 0 1 3 0 2.75

Itau Unibanco currently has a consensus price target of $14.25, indicating a potential upside of 4.17%. Equity BancShares has a consensus price target of $33.00, indicating a potential downside of 7.20%. Given Itau Unibanco’s higher probable upside, analysts plainly believe Itau Unibanco is more favorable than Equity BancShares.

Summary

Equity BancShares beats Itau Unibanco on 8 of the 15 factors compared between the two stocks.

About Itau Unibanco

Itau Unibanco Holding S.A. is a holding company. The Company provides a range of financial products and services to individual and corporate clients in Brazil and abroad. The Company operates through three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. The Retail Banking segment offers banking products and services to a diversified client base of account holders and non-account holders, individuals and companies. The Wholesale Banking segment offers products and services to middle-market companies, high-net worth clients (Private Banking) and institutional clients. The Company’s Activities with the Market + Corporation segment mainly manages the financial results associated with capital surplus, subordinated debt, and net debt of tax credits and debits. The Company provides banking activities, through its commercial, investment, real estate loan, finance and investment credit, and lease portfolios, including foreign exchange operations.

About Equity BancShares

Equity Bancshares, Inc. is a bank holding company. The Company’s principal activity is the ownership and management of its subsidiary, Equity Bank (the Bank). The Bank provides a range of financial services primarily to businesses and business owners, as well as individuals through its network of over 30 branches located in Kansas and Missouri. The Company’s operations involve the delivery of loan and deposit products to its customers. The Company offers commercial banking products and other services, including lending activities, deposit products, and other products and services. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements and mobile banking solutions. In addition, the Company offers commercial treasury management services, wire transfer, automated clearing house (ACH) services and cash management deposit products.

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