HSBC (HSBC) Competitors

HSBC (NYSE:HSBC) and Bank of America (NYSE:BAC) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, media sentiment, earnings, dividends and profitability.

Is HSBC or BAC a better dividend stock?

HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 3.0%. Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.2%. HSBC pays out 39.2% of its earnings in the form of a dividend. Bank of America pays out 30.4% 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. Bank of America has raised its dividend for 11 consecutive years.

Do insiders & institutionals believe in HSBC or BAC?

1.5% of HSBC shares are owned by institutional investors. Comparatively, 70.7% of Bank of America shares are owned by institutional investors. 0.0% of HSBC shares are owned by insiders. Comparatively, 0.3% of Bank of America shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Which has more volatility and risk, HSBC or BAC?

HSBC has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Do analysts prefer HSBC or BAC?

HSBC currently has a consensus price target of $63.00, indicating a potential downside of 2.97%. Bank of America has a consensus price target of $50.13, indicating a potential upside of 5.53%. Given Bank of America's stronger consensus rating and higher probable upside, analysts plainly believe Bank of America is more favorable than HSBC.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HSBC	0 Sell rating(s)	4 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.20
Bank of America	0 Sell rating(s)	5 Hold rating(s)	17 Buy rating(s)	0 Strong Buy rating(s)	2.77

Is HSBC or BAC more profitable?

Bank of America has a net margin of 14.81% compared to HSBC's net margin of 13.48%. HSBC's return on equity of 12.73% beat Bank of America's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
HSBC	13.48%	12.73%	0.81%
Bank of America	14.81%	10.25%	0.84%

Does the media favor HSBC or BAC?

In the previous week, Bank of America had 85 more articles in the media than HSBC. MarketBeat recorded 108 mentions for Bank of America and 23 mentions for HSBC. Bank of America's average media sentiment score of 1.00 beat HSBC's score of 0.73 indicating that Bank of America is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
HSBC	12 Very Positive mention(s)	1 Positive mention(s)	7 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive
Bank of America	63 Very Positive mention(s)	25 Positive mention(s)	12 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has preferable valuation and earnings, HSBC or BAC?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HSBC	$141.75B	1.60	$23.98B	$5.05	12.86
Bank of America	$192.43B	1.83	$27.13B	$3.42	13.89

Summary

Bank of America beats HSBC on 16 of the 19 factors compared between the two stocks.