HSBC (NYSE:HSBC) and Its Competitors Head-To-Head Survey

HSBC (NYSE: HSBC) is one of 310 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare HSBC to similar companies based on the strength of its earnings, profitability, analyst recommendations, risk, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for HSBC and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HSBC 1 4 4 0 2.33
HSBC Competitors 2259 8691 8714 359 2.36

HSBC currently has a consensus target price of $9.00, suggesting a potential downside of 83.31%. As a group, “Banks” companies have a potential downside of 8.65%. Given HSBC’s peers stronger consensus rating and higher possible upside, analysts plainly believe HSBC has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares HSBC and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
HSBC $50.32 billion $2.48 billion 39.36
HSBC Competitors $5.50 billion $827.87 million 384.62

HSBC has higher revenue and earnings than its peers. HSBC is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

2.2% of HSBC shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

HSBC has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, HSBC’s peers have a beta of 0.78, indicating that their average share price is 22% less volatile than the S&P 500.

Profitability

This table compares HSBC and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HSBC N/A 4.13% 0.32%
HSBC Competitors 18.61% 8.21% 0.93%

Dividends

HSBC pays an annual dividend of $2.05 per share and has a dividend yield of 3.8%. HSBC pays out 149.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.9% of their earnings in the form of a dividend. HSBC has raised its dividend for 4 consecutive years.

Summary

HSBC peers beat HSBC on 10 of the 15 factors compared.

HSBC Company Profile

HSBC Holdings plc (HSBC) is the banking and financial services company. The Company manages its products and services through four businesses: Retail Banking and Wealth Management (RBWM), Commercial Banking (CMB), Global Banking and Markets (GB&M), and Global Private Banking (GPB). It operates across various geographical regions, which include Europe, Asia, Middle East and North Africa, North America and Latin America. RBWM business offers Retail Banking, Wealth Management, Asset Management and Insurance. CMB services include working capital, term loans, payment services and international trade facilitation, among other services, as well as expertise in mergers and acquisitions, and access to financial markets. GB&M supports government, corporate and institutional clients across the world. GPB’s products and services include Investment Management, Private Wealth Solutions, and a range of Private Banking services.

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