Head-To-Head Comparison: Itaú Unibanco (NYSE:ITUB) versus Eagle Financial Services (OTCMKTS:EFSI)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Eagle Financial Services and Itaú Unibanco, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Financial Services	0	0	0	0	0.00
Itaú Unibanco	0	2	3	0	2.60

Itaú Unibanco has a consensus price target of $7.50, indicating a potential upside of 54.00%. Given Itaú Unibanco’s stronger consensus rating and higher possible upside, analysts clearly believe Itaú Unibanco is more favorable than Eagle Financial Services.

Dividends

Eagle Financial Services pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. Itaú Unibanco pays an annual dividend of $0.03 per share and has a dividend yield of 0.6%. Eagle Financial Services pays out 38.0% of its earnings in the form of a dividend. Itaú Unibanco pays out 3.8% 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.

Risk and Volatility

Eagle Financial Services has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Itaú Unibanco has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eagle Financial Services	10.90%	10.38%	0.63%
Itaú Unibanco	12.33%	19.72%	1.49%

Institutional & Insider Ownership

0.3% of Eagle Financial Services shares are owned by institutional investors. 12.3% of Eagle Financial Services shares are owned by company insiders. Comparatively, 0.6% of Itaú Unibanco shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Eagle Financial Services and Itaú Unibanco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Financial Services	$97.87 million	1.31	$9.36 million	$3.26	11.12
Itaú Unibanco	$156.52 billion	0.30	$6.63 billion	$0.78	6.24

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

Summary

Itaú Unibanco beats Eagle Financial Services on 10 of the 16 factors compared between the two stocks.

About Eagle Financial Services

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke that provides various retail and commercial banking products and services in the Shenandoah Valley, Northern Virginia and Frederick, Maryland. It operates through three segments: Community Banking, Marine Lending, and Wealth Management. The company's deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers fiduciary services; advisory services and investment products, including individual retirement accounts, mutual funds, tax-deferred annuities, 529 college savings plans, life insurance, long term care insurance, brokerage certificates of deposit, and other brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; online bill payment services; wealth management services; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through full-service branches, loan production offices, drive-through only facility, and ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax, as well as Maryland community of Frederick. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.

About Itaú Unibanco

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 + Corporation. It offers current account; loans; credit and debit cards; investment and commercial banking services; real estate lending services; financing and investment services; economic, financial and brokerage advisory; 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. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies, as well as middle-market companies and high net worth clients. 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. operates as a subsidiary of IUPAR – Itaú Unibanco Participações S.A.