HSBC (NYSE: HSBC) is one of 289 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare HSBC to related companies based on the strength of its earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

2.2% of HSBC shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Banks” companies are owned by institutional investors. 10.5% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares HSBC and its competitors’ 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 18.54% 8.20% 0.93%

Valuation and Earnings

This table compares HSBC and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
HSBC $50.32 billion $2.48 billion 39.16
HSBC Competitors $5.74 billion $861.56 million 428.25

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

Risk & Volatility

HSBC has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, HSBC’s competitors have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

Dividends

HSBC pays an annual dividend of $2.05 per share and has a dividend yield of 3.7%. HSBC pays out 146.4% 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 35.5% of their earnings in the form of a dividend. HSBC has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for HSBC and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HSBC 1 4 4 0 2.33
HSBC Competitors 2341 8345 8313 358 2.35

HSBC presently has a consensus price target of $9.00, suggesting a potential downside of 83.59%. As a group, “Banks” companies have a potential downside of 11.79%. Given HSBC’s competitors stronger consensus rating and higher probable upside, analysts plainly believe HSBC has less favorable growth aspects than its competitors.

Summary

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

About HSBC

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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