HSBC (NYSE: HSBC) is one of 315 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare HSBC to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Dividends

HSBC pays an annual dividend of $2.05 per share and has a dividend yield of 3.9%. 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 34.9% of their earnings in the form of a dividend. HSBC has raised its dividend for 4 consecutive years.

Volatility & Risk

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

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
HSBC $50.32 billion $2.48 billion 37.26
HSBC Competitors $5.50 billion $827.87 million 390.43

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.

Institutional & Insider Ownership

2.2% of HSBC shares are held by institutional investors. Comparatively, 52.1% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock 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 18.61% 8.29% 0.93%

Analyst Recommendations

This is a summary of current recommendations for HSBC and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HSBC 1 4 4 0 2.33
HSBC Competitors 2248 8752 8741 354 2.36

HSBC presently has a consensus price target of $9.00, indicating a potential downside of 82.75%. As a group, “Banks” companies have a potential downside of 7.81%. Given HSBC’s competitors stronger consensus rating and higher probable upside, analysts clearly 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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