HSBC vs. AXP, MS, GS, RY, SCHW, MUFG, PGR, WFC, C, and BLK
Should you be buying HSBC stock or one of its competitors? The main competitors of HSBC include American Express (AXP), Morgan Stanley (MS), The Goldman Sachs Group (GS), Royal Bank of Canada (RY), Charles Schwab (SCHW), Mitsubishi UFJ Financial Group (MUFG), Progressive (PGR), Wells Fargo & Company (WFC), Citigroup (C), and BlackRock (BLK). These companies are all part of the "finance" sector.
American Express (NYSE:AXP) and HSBC (NYSE:HSBC) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends, media sentiment, valuation and community ranking.
HSBC has higher revenue and earnings than American Express. HSBC is trading at a lower price-to-earnings ratio than American Express, indicating that it is currently the more affordable of the two stocks.
American Express currently has a consensus target price of $210.71, indicating a potential downside of 8.96%. HSBC has a consensus target price of $560.00, indicating a potential upside of 1,182.93%. Given American Express' higher probable upside, analysts clearly believe HSBC is more favorable than American Express.
American Express received 334 more outperform votes than HSBC when rated by MarketBeat users. Likewise, 60.40% of users gave American Express an outperform vote while only 59.76% of users gave HSBC an outperform vote.
American Express has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, HSBC has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.
American Express pays an annual dividend of $2.80 per share and has a dividend yield of 1.2%. HSBC pays an annual dividend of $6.18 per share and has a dividend yield of 14.2%. American Express pays out 23.1% of its earnings in the form of a dividend. 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. American Express has increased its dividend for 3 consecutive years and HSBC has increased its dividend for 1 consecutive years.
In the previous week, HSBC had 10 more articles in the media than American Express. MarketBeat recorded 52 mentions for HSBC and 42 mentions for American Express. HSBC's average media sentiment score of 0.74 beat American Express' score of 0.44 indicating that American Express is being referred to more favorably in the media.
HSBC has a net margin of 19.02% compared to HSBC's net margin of 14.50%. HSBC's return on equity of 32.46% beat American Express' return on equity.
84.3% of American Express shares are held by institutional investors. Comparatively, 1.5% of HSBC shares are held by institutional investors. 0.1% of American Express shares are held by company insiders. Comparatively, 0.0% of HSBC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
American Express beats HSBC on 15 of the 21 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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