HSBC (HSBC) Competitors

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

Do analysts recommend HSBC or BAC?

Bank of America has a consensus target price of $42.27, suggesting a potential upside of 5.39%. Given Bank of America's stronger consensus rating and higher possible 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	2 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.00
Bank of America	1 Sell rating(s)	8 Hold rating(s)	12 Buy rating(s)	1 Strong Buy rating(s)	2.59

Does the MarketBeat Community favor HSBC or BAC?

Bank of America received 1117 more outperform votes than HSBC when rated by MarketBeat users. Likewise, 65.53% of users gave Bank of America an outperform vote while only 59.56% of users gave HSBC an outperform vote.

Company	Underperform	Outperform
HSBC	Outperform Votes 866 59.56%	Underperform Votes 588 40.44%
Bank of America	Outperform Votes 1983 65.53%	Underperform Votes 1043 34.47%

Does the media prefer HSBC or BAC?

In the previous week, Bank of America had 40 more articles in the media than HSBC. MarketBeat recorded 61 mentions for Bank of America and 21 mentions for HSBC. HSBC's average media sentiment score of 0.48 beat Bank of America's score of 0.28 indicating that HSBC is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
HSBC	7 Very Positive mention(s)	6 Positive mention(s)	4 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Neutral
Bank of America	18 Very Positive mention(s)	12 Positive mention(s)	18 Neutral mention(s)	8 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more volatility and risk, HSBC or BAC?

HSBC has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Is HSBC or BAC more profitable?

HSBC has a net margin of 15.61% compared to Bank of America's net margin of 13.28%. HSBC's return on equity of 10.60% beat Bank of America's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
HSBC	15.61%	10.60%	0.68%
Bank of America	13.28%	10.56%	0.87%

Do insiders and 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, endowments and hedge funds believe a stock will outperform the market over the long term.

Is HSBC or BAC a better dividend stock?

HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 4.3%. Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. HSBC pays out 34.1% of its earnings in the form of a dividend. Bank of America pays out 36.0% 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 increased its dividend for 11 consecutive years. HSBC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has higher 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	$64.07B	2.68	$23.53B	$5.80	7.91
Bank of America	$98.32B	3.19	$26.52B	$2.89	13.88

Summary

Bank of America beats HSBC on 15 of the 21 factors compared between the two stocks.