HSBC (NYSE:HSBC) vs. Origin Bancorp (NYSE:OBK) Financial Survey

HSBC (NYSE:HSBC) and Origin Bancorp (NYSE:OBK) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Risk & Volatility

HSBC has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Origin Bancorp has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for HSBC and Origin Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HSBC	2	11	3	0	2.06
Origin Bancorp	0	3	5	0	2.62

HSBC currently has a consensus price target of $97.00, indicating a potential upside of 4.29%. Origin Bancorp has a consensus price target of $58.00, indicating a potential upside of 12.24%. Given Origin Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Origin Bancorp is more favorable than HSBC.

Institutional & Insider Ownership

1.5% of HSBC shares are owned by institutional investors. Comparatively, 54.7% of Origin Bancorp shares are owned by institutional investors. 0.0% of HSBC shares are owned by insiders. Comparatively, 5.3% of Origin Bancorp shares are owned by 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.

Dividends

HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 2.1%. Origin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. HSBC pays out 28.1% of its earnings in the form of a dividend. Origin Bancorp pays out 31.2% 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. Origin Bancorp has raised its dividend for 4 consecutive years. HSBC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares HSBC and Origin Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HSBC	18.19%	13.80%	0.83%
Origin Bancorp	16.26%	7.97%	1.00%

Earnings & Valuation

This table compares HSBC and Origin Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HSBC	$73.79 billion	4.33	$22.29 billion	$7.05	13.19
Origin Bancorp	$597.80 million	2.67	$75.20 million	$3.20	16.15

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

Summary

Origin Bancorp beats HSBC on 9 of the 17 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 Origin Bancorp

Origin Bancorp, Inc. operates as a bank holding company for Origin Bank that provides banking and financial services to small and medium-sized businesses, municipalities, high net worth individuals, and retail clients in Texas, Louisiana, and Mississippi. It offers noninterest and interest-bearing checking accounts, savings deposits, money market accounts, and time deposits; and offers commercial real estate, construction and land development, consumer, residential real estate, commercial and industrial, mortgage warehouse, residential mortgage, and paycheck protection program loans. The company also offers personal and commercial property, and casualty insurance products; and Internet banking and voice response information, mobile applications, cash management, overdraft protection, direct deposit, safe deposit box, U.S. savings bonds, and automatic account transfer services; and treasury management, mortgage origination and servicing facilities, peer-to-peer electronic pay solutions, and personal financial management solutions. As of December 31, 2021, it operated 44 banking centers. The company was founded in 1912 and is headquartered in Ruston, Louisiana.