HSBA vs. BNC, LSEG, LLOY, BARC, STAN, CABP, NWG, PRU, LGEN, and AV
Should you be buying HSBC stock or one of its competitors? The main competitors of HSBC include Banco Santander (BNC), London Stock Exchange Group (LSEG), Lloyds Banking Group (LLOY), Barclays (BARC), Standard Chartered (STAN), CAB Payments (CABP), NatWest Group (NWG), Prudential (PRU), Legal & General Group (LGEN), and Aviva (AV). These companies are all part of the "financial services" sector.
Banco Santander (LON:BNC) and HSBC (LON:HSBA) are both large-cap financial services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, community ranking, profitability, risk, media sentiment, earnings and valuation.
Banco Santander pays an annual dividend of GBX 15 per share and has a dividend yield of 3.6%. HSBC pays an annual dividend of GBX 49 per share and has a dividend yield of 7.0%. Banco Santander pays out 2,586.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HSBC pays out 5,326.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
HSBC has a net margin of 41.26% compared to HSBC's net margin of 24.68%. Banco Santander's return on equity of 12.31% beat HSBC's return on equity.
Banco Santander has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, HSBC has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.
30.8% of Banco Santander shares are owned by institutional investors. Comparatively, 44.7% of HSBC shares are owned by institutional investors. 0.4% of Banco Santander shares are owned by insiders. Comparatively, 0.3% of HSBC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
HSBC received 876 more outperform votes than Banco Santander when rated by MarketBeat users. However, 64.74% of users gave Banco Santander an outperform vote while only 50.13% of users gave HSBC an outperform vote.
HSBC has higher revenue and earnings than Banco Santander. Banco Santander is trading at a lower price-to-earnings ratio than HSBC, indicating that it is currently the more affordable of the two stocks.
HSBC has a consensus price target of GBX 807.65, indicating a potential upside of 16.02%. Given Banco Santander's higher probable upside, analysts clearly believe HSBC is more favorable than Banco Santander.
In the previous week, HSBC had 11 more articles in the media than Banco Santander. MarketBeat recorded 15 mentions for HSBC and 4 mentions for Banco Santander. Banco Santander's average media sentiment score of 0.37 beat HSBC's score of -0.03 indicating that HSBC is being referred to more favorably in the news media.
Summary
HSBC beats Banco Santander on 16 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HSBA 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 LON 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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