HSBC vs. WFC, MS, RY, AXP, HDB, TD, GS, PLD, MUFG, and BLK
Should you be buying HSBC stock or one of its competitors? The main competitors of HSBC include Wells Fargo & Company (WFC), Morgan Stanley (MS), Royal Bank of Canada (RY), American Express (AXP), HDFC Bank (HDB), Toronto-Dominion Bank (TD), The Goldman Sachs Group (GS), Prologis (PLD), Mitsubishi UFJ Financial Group (MUFG), and BlackRock (BLK). These companies are all part of the "finance" sector.
HSBC vs.
HSBC (NYSE:HSBC) and Wells Fargo & Company (NYSE:WFC) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations, media sentiment, risk and community ranking.
In the previous week, HSBC had 1 more articles in the media than Wells Fargo & Company. MarketBeat recorded 31 mentions for HSBC and 30 mentions for Wells Fargo & Company. Wells Fargo & Company's average media sentiment score of 0.76 beat HSBC's score of 0.26 indicating that Wells Fargo & Company is being referred to more favorably in the news media.
Wells Fargo & Company received 631 more outperform votes than HSBC when rated by MarketBeat users. Likewise, 63.96% of users gave Wells Fargo & Company an outperform vote while only 60.30% of users gave HSBC an outperform vote.
HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 5.0%. Wells Fargo & Company pays an annual dividend of $1.40 per share and has a dividend yield of 3.4%. HSBC pays out 33.4% of its earnings in the form of a dividend. Wells Fargo & Company pays out 35.0% 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. HSBC is clearly the better dividend stock, given its higher yield and lower payout ratio.
HSBC has higher earnings, but lower revenue than Wells Fargo & Company. HSBC is trading at a lower price-to-earnings ratio than Wells Fargo & Company, indicating that it is currently the more affordable of the two stocks.
HSBC presently has a consensus price target of $291.50, suggesting a potential upside of 643.24%. Wells Fargo & Company has a consensus price target of $48.02, suggesting a potential upside of 16.60%. Given HSBC's stronger consensus rating and higher possible upside, equities research analysts plainly believe HSBC is more favorable than Wells Fargo & Company.
1.5% of HSBC shares are held by institutional investors. Comparatively, 72.5% of Wells Fargo & Company shares are held by institutional investors. 0.0% of HSBC shares are held by company insiders. Comparatively, 0.1% of Wells Fargo & Company shares are held 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 has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Wells Fargo & Company has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
HSBC has a net margin of 26.43% compared to Wells Fargo & Company's net margin of 16.18%. HSBC's return on equity of 12.19% beat Wells Fargo & Company's return on equity.
Summary
Wells Fargo & Company beats HSBC on 11 of the 21 factors compared between the two stocks.
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New MarketBeat Followers Over Time
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.
Media Sentiment Over Time
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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