HSBC vs. MS, AXP, RY, SCHW, GS, PGR, MUFG, BLK, C, and PLD
Should you be buying HSBC stock or one of its competitors? The main competitors of HSBC include Morgan Stanley (MS), American Express (AXP), Royal Bank of Canada (RY), Charles Schwab (SCHW), The Goldman Sachs Group (GS), Progressive (PGR), Mitsubishi UFJ Financial Group (MUFG), BlackRock (BLK), Citigroup (C), and Prologis (PLD). 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 better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, media sentiment, profitability, community ranking, dividends, valuation, institutional ownership and earnings.
HSBC has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Morgan Stanley has a beta of 1.43, meaning that its share price is 43% 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 71 more articles in the media than HSBC. MarketBeat recorded 88 mentions for Morgan Stanley and 17 mentions for HSBC. Morgan Stanley's average media sentiment score of 0.62 beat HSBC's score of 0.02 indicating that Morgan Stanley is being referred to more favorably in the news media.
Morgan Stanley received 349 more outperform votes than HSBC when rated by MarketBeat users. Likewise, 61.07% of users gave Morgan Stanley an outperform vote while only 59.90% of users gave HSBC an outperform vote.
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 insiders. Comparatively, 0.2% of Morgan Stanley shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
HSBC has a net margin of 19.02% compared to Morgan Stanley's net margin of 9.57%. HSBC's return on equity of 12.89% beat Morgan Stanley's return on equity.
HSBC pays an annual dividend of $6.18 per share and has a dividend yield of 15.5%. Morgan Stanley pays an annual dividend of $3.40 per share and has a dividend yield of 3.8%. HSBC pays out 108.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Morgan Stanley pays out 61.9% of its earnings in the form of a dividend.
HSBC presently has a consensus target price of $560.00, indicating a potential upside of 1,300.35%. Morgan Stanley has a consensus target price of $96.13, indicating a potential upside of 6.71%. Given HSBC's higher probable upside, equities analysts plainly believe HSBC is more favorable than Morgan Stanley.
Summary
Morgan Stanley beats HSBC on 13 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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