HSBC (HSBC) Competitors

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

Which has better earnings and valuation, BAC or HSBC?

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
Bank of America	$192.43B	1.85	$27.13B	$3.36	14.08
HSBC	$141.75B	1.51	$23.98B	$5.45	11.15

Do institutionals & insiders hold more shares of BAC or HSBC?

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

Do analysts prefer BAC or HSBC?

Bank of America currently has a consensus target price of $47.65, suggesting a potential upside of 0.71%. HSBC has a consensus target price of $63.00, suggesting a potential upside of 3.64%. Given HSBC's higher probable upside, analysts clearly believe HSBC is more favorable than Bank of America.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of America	1 Sell rating(s)	6 Hold rating(s)	18 Buy rating(s)	3 Strong Buy rating(s)	2.82
HSBC	0 Sell rating(s)	4 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	2.50

Is BAC or HSBC more profitable?

Bank of America has a net margin of 14.56% compared to HSBC's net margin of 14.55%. HSBC's return on equity of 12.55% beat Bank of America's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bank of America	14.56%	10.25%	0.84%
HSBC	14.55%	12.55%	0.81%

Is BAC or HSBC a better dividend stock?

Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.2%. HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 3.3%. Bank of America pays out 31.0% of its earnings in the form of a dividend. HSBC pays out 36.3% 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.

Does the media refer more to BAC or HSBC?

In the previous week, Bank of America had 98 more articles in the media than HSBC. MarketBeat recorded 120 mentions for Bank of America and 22 mentions for HSBC. Bank of America's average media sentiment score of 0.96 beat HSBC's score of 0.50 indicating that Bank of America is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Bank of America	73 Very Positive mention(s)	15 Positive mention(s)	21 Neutral mention(s)	7 Negative mention(s)	1 Very Negative mention(s)	Positive
HSBC	7 Very Positive mention(s)	3 Positive mention(s)	9 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more volatility & risk, BAC or HSBC?

Bank of America has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, HSBC has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Summary

Bank of America beats HSBC on 16 of the 20 factors compared between the two stocks.