Analyzing HSBC (NYSE:HSBC) and Lion Finance Group (OTCMKTS:BDGSF)

HSBC (NYSE:HSBC) and Lion Finance Group (OTCMKTS:BDGSF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Profitability

This table compares HSBC and Lion Finance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HSBC	16.07%	13.10%	0.82%
Lion Finance Group	32.24%	28.64%	3.93%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for HSBC and Lion Finance Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HSBC	0	2	7	1	2.90
Lion Finance Group	0	0	0	0	0.00

HSBC presently has a consensus price target of $63.00, indicating a potential downside of 30.22%. Given HSBC’s stronger consensus rating and higher possible upside, analysts plainly believe HSBC is more favorable than Lion Finance Group.

Valuation and Earnings

This table compares HSBC and Lion Finance Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HSBC	$131.35 billion	2.36	$22.29 billion	$6.05	14.92
Lion Finance Group	$2.46 billion	2.43	$791.84 million	$18.21	7.37

HSBC has higher revenue and earnings than Lion Finance Group. Lion Finance Group is trading at a lower price-to-earnings ratio than HSBC, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

HSBC has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Lion Finance Group has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

1.5% of HSBC shares are owned by institutional investors. 0.0% of HSBC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

HSBC beats Lion Finance Group on 10 of the 15 factors compared between the two stocks.

About HSBC

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions. This segment serves personal banking and high net worth individuals. The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services; commercial cards; international trade and receivables finance services; foreign exchange products; capital raising services on debt and equity markets; and advisory services. It serves small and medium sized enterprises, mid-market enterprises, and corporates. The Global Banking and Markets segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services; and engages in principal investment activities. It serves government, corporate and institutional clients, and private investors. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

About Lion Finance Group

Bank of Georgia Group PLC, through its subsidiaries, provides banking and financial services with focus on the Georgian and Armenian markets. It operates through Retail Banking, SME Banking, Corporate Investment Banking, and BNB segments. The Retail Banking segment offers consumer loans, mortgage loans, overdrafts, credit cards, and other credit facilities; funds transfer and settlement services; and handles customers' deposits for individuals and legal entities. This segment primarily serves mass retail and affluent, and high-net-worth client segments. The SME Banking segment provides SME loans, micro loans, and consumer and mortgage loans; funds transfers and settlement services; and handles customers' deposits for legal entities. This segment serves small and medium-sized enterprises; and micro businesses. The Corporate Investment Banking segment provides loans and other credit facilities, funds transfers and settlement services, trade finance services, and documentary operations support services; handles saving and term deposits for corporate and institutional customers; and offers brokerage services. The BNB segment provides retail and corporate banking services to clients in Belarus. Bank of Georgia Group PLC was incorporated in 2017 and is headquartered in London, the United Kingdom.