HSBC vs. MS, AXP, GS, RY, SCHW, C, MUFG, PGR, BLK, and CB
Should you be buying HSBC stock or one of its competitors? The main competitors of HSBC include Morgan Stanley (MS), American Express (AXP), The Goldman Sachs Group (GS), Royal Bank of Canada (RY), Charles Schwab (SCHW), Citigroup (C), Mitsubishi UFJ Financial Group (MUFG), Progressive (PGR), BlackRock (BLK), and Chubb (CB). These companies are all part of the "finance" sector.
HSBC (NYSE:HSBC) and Morgan Stanley (NYSE:MS) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, community ranking, dividends, media sentiment and earnings.
Morgan Stanley received 355 more outperform votes than HSBC when rated by MarketBeat users. Likewise, 60.99% of users gave Morgan Stanley an outperform vote while only 59.56% of users gave HSBC an outperform vote.
HSBC has a net margin of 16.13% compared to Morgan Stanley's net margin of 9.57%. Morgan Stanley's return on equity of 10.88% beat HSBC's return on equity.
Morgan Stanley has a consensus target price of $98.30, suggesting a potential downside of 1.16%. Given Morgan Stanley's stronger consensus rating and higher probable upside, analysts plainly believe Morgan Stanley is more favorable than HSBC.
1.5% of HSBC shares are owned by institutional investors. Comparatively, 84.2% of Morgan Stanley shares are owned by institutional investors. 0.0% of HSBC shares are owned by company insiders. Comparatively, 0.2% of Morgan Stanley shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 4.5%. Morgan Stanley pays an annual dividend of $3.40 per share and has a dividend yield of 3.4%. HSBC pays out 34.1% of its earnings in the form of a dividend. Morgan Stanley pays out 61.9% 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. HSBC is clearly the better dividend stock, given its higher yield and lower payout ratio.
HSBC has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Morgan Stanley has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.
HSBC has higher revenue and earnings than Morgan Stanley. HSBC is trading at a lower price-to-earnings ratio than Morgan Stanley, indicating that it is currently the more affordable of the two stocks.
In the previous week, Morgan Stanley had 23 more articles in the media than HSBC. MarketBeat recorded 42 mentions for Morgan Stanley and 19 mentions for HSBC. Morgan Stanley's average media sentiment score of 0.46 beat HSBC's score of 0.13 indicating that Morgan Stanley is being referred to more favorably in the news media.
Summary
Morgan Stanley beats HSBC on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HSBC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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