Quick verdict: BBD vs ITUB in 2026

Overall, the comparison between BBD and ITUB in 2026 reveals a balanced but nuanced picture, with neither stock presenting a clear, overwhelming advantage across all metrics. BBD stands out as the growth leader with significantly higher year-over-year revenue growth, and it also appears to be the value leader based on more attractive P/E and P/B ratios. In contrast, ITUB clearly holds the edge as the margin leader, demonstrating superior profitability through its net and EBITDA margins, and is the analyst favorite with a higher percentage of ‘Buy’ ratings. While both stocks show negative analyst price targets, BBD has a less severe downside projection, giving it a relative edge in terms of potential upside. Not investment advice.

BBD vs ITUB: key metrics side by side

Full side-by-side comparison of BBD and ITUB across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-03.

BBD vs ITUB valuation comparison

When comparing BBD vs ITUB valuation, Banco Bradesco S.A. (BBD) presents itself as the more attractively valued option based on traditional metrics as of 2026-05-03. BBD trades at a P/E ratio of 8.63x, which is notably lower than Itaú Unibanco Holding S.A.’s (ITUB) P/E of 10.62x. This suggests that investors are paying less for each dollar of earnings with BBD. Furthermore, BBD’s Price-to-Book (P/B) ratio stands at 1.15x, significantly below ITUB’s 2.33x, indicating that BBD’s assets are valued more modestly relative to its market price.

Despite BBD’s lower multiples, it is important to consider the Discounted Cash Flow (DCF) analysis provided. Both stocks currently show substantial negative DCF upsides, with BBD at -309.6% and ITUB at -175.3%. While neither indicates positive intrinsic value based on this specific model, ITUB’s negative valuation is less pronounced, which might imply a slightly less severe undervaluation or overvaluation depending on the model’s assumptions. However, strictly on Price-to-Earnings and Price-to-Book, BBD maintains a clear advantage in terms of presenting a cheaper valuation profile in this BBD vs ITUB valuation comparison.

BBD vs ITUB growth comparison

In the BBD vs ITUB growth comparison, Banco Bradesco S.A. (BBD) clearly demonstrates stronger momentum in revenue expansion. BBD reported an impressive year-over-year revenue growth of 37.1%, significantly outpacing Itaú Unibanco Holding S.A.’s (ITUB) more modest growth rate of 18.0%. This substantial difference highlights BBD’s capacity for faster top-line expansion in the current market environment as of 2026-05-03. Such robust revenue growth can be a key indicator for investors seeking companies with strong market penetration or increasing demand for their services.

While BBD exhibits superior revenue growth, it is also essential to consider that growth alone does not tell the full story without profitability. ITUB, despite slower revenue growth, maintains higher net and EBITDA margins, suggesting more efficient conversion of revenue into profit. However, for investors prioritizing a company’s ability to rapidly expand its sales base and capture market share, BBD’s exceptional revenue growth rate indicates stronger business momentum and a potentially more dynamic growth trajectory compared to ITUB.

BBD vs ITUB profitability

Turning to BBD vs ITUB profitability, Itaú Unibanco Holding S.A. (ITUB) stands out with superior margins, indicating greater efficiency in converting its revenue into profit. ITUB boasts a net margin of 11.66%, which is considerably higher than Banco Bradesco S.A.’s (BBD) net margin of 7.32%. This delta of over four percentage points suggests that ITUB retains a larger portion of its sales as profit after all expenses, including taxes. Similarly, ITUB’s EBITDA margin of 14.99% far exceeds BBD’s 7.87%, further reinforcing its operational efficiency and stronger core profitability before interest, taxes, depreciation, and amortization.

Regarding Return on Equity (ROE), both companies are listed as N/A%, so a direct comparison on this specific metric is not possible with the provided data. However, in terms of Free Cash Flow (FCF) yield, BBD takes the lead with an FCF yield of 20.02%, significantly higher than ITUB’s 13.49%. This indicates that BBD generates more cash flow relative to its market capitalization, suggesting a stronger ability to generate cash for debt reduction, dividends, or reinvestment, even if its net profit margins are lower. Therefore, while ITUB demonstrates better profit margins, BBD’s higher FCF yield suggests a robust capacity for cash generation.

Analyst ratings: BBD vs ITUB

The analyst ratings for BBD vs ITUB reveal a clearer preference for Itaú Unibanco Holding S.A. (ITUB) among market professionals. Out of 12 analysts covering ITUB, a strong 50.0% have issued ‘Buy’ recommendations, leading to a consensus rating of ‘Buy’. This positive sentiment is noteworthy, despite the average analyst price target for ITUB being $6.38, which implies a significant negative downside of -26.0% from its current price of $8.62. This suggests that while analysts see a strong underlying business or future potential for ITUB, current market pricing might be ahead of their target.

In contrast, Banco Bradesco S.A. (BBD) receives a more cautious outlook from analysts. Of the 15 analysts covering BBD, only 33.3% recommend a ‘Buy’ rating, resulting in a ‘Hold’ consensus. The average price target for BBD is $3.2, indicating a projected downside of -16.7% from its current price of $3.84. While BBD’s projected downside is less severe than ITUB’s, the lower percentage of ‘Buy’ ratings and the ‘Hold’ consensus suggest analysts are less enthusiastic about BBD’s immediate investment potential compared to ITUB. Overall, analysts appear to prefer ITUB, evidenced by the higher ‘Buy’ percentage and ‘Buy’ consensus, despite the challenging price target implications for both stocks.

Should I buy BBD or ITUB stock in 2026?

Deciding whether to buy BBD or ITUB stock in 2026 depends heavily on an investor’s specific priorities, as both companies offer distinct advantages and drawbacks. For growth-oriented investors, Banco Bradesco S.A. (BBD) appears to be the more compelling choice. Its remarkable year-over-year revenue growth of 37.1% far surpasses Itaú Unibanco Holding S.A.’s (ITUB) 18.0%, indicating stronger market expansion and potential for future top-line gains. If your primary objective is to invest in a company demonstrating robust sales momentum, BBD aligns better with that strategy.

Value investors, too, might find BBD more attractive based on its current fundamental valuation. BBD trades at a lower Price-to-Earnings (P/E) ratio of 8.63x compared to ITUB’s 10.62x, and a significantly lower Price-to-Book (P/B) ratio of 1.15x versus ITUB’s 2.33x. This suggests that BBD is currently priced more favorably relative to its earnings and assets. Additionally, BBD offers a higher Free Cash Flow (FCF) yield of 20.02%, indicating better cash generation efficiency per dollar of market value compared to ITUB’s 13.49%.

For investors focused on income, the choice is less distinct, as both stocks offer relatively low dividend yields. However, Itaú Unibanco Holding S.A. (ITUB) provides a slightly higher dividend yield of 0.08% compared to Banco Bradesco S.A.’s (BBD) 0.07%. While this difference is minimal, ITUB technically holds the edge for income-seeking investors, although neither stock appears to be a primary choice solely for its dividend income. Ultimately, the decision of whether to buy BBD or ITUB stock in 2026 should align with your investment horizon and risk tolerance, remembering that this is not investment advice.

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FAQ: BBD vs ITUB