HSBC (HSBC) Competitors

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

Do insiders and institutionals hold more shares of BAC or HSBC?

70.7% of Bank of America shares are owned by institutional investors. Comparatively, 1.5% of HSBC shares are owned by institutional investors. 0.3% of Bank of America shares are owned by company insiders. Comparatively, 0.0% of HSBC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Is BAC or HSBC a better dividend stock?

Bank of America pays an annual dividend of $1.04 per share and has a dividend yield of 2.4%. HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 4.1%. Bank of America pays out 37.8% of its earnings in the form of a dividend. HSBC pays out 32.7% 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 raised its dividend for 11 consecutive years. HSBC is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media favor BAC or HSBC?

In the previous week, Bank of America had 6 more articles in the media than HSBC. MarketBeat recorded 48 mentions for Bank of America and 42 mentions for HSBC. Bank of America's average media sentiment score of 0.62 beat HSBC's score of 0.03 indicating that Bank of America is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Bank of America	12 Very Positive mention(s)	18 Positive mention(s)	14 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive
HSBC	14 Very Positive mention(s)	3 Positive mention(s)	10 Neutral mention(s)	5 Negative mention(s)	10 Very Negative mention(s)	Neutral

Which has better valuation and earnings, BAC or HSBC?

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
Bank of America	$171.91B	1.94	$26.52B	$2.75	15.77
HSBC	$64.26B	2.70	$23.53B	$6.05	7.96

Do analysts rate BAC or HSBC?

Bank of America presently has a consensus target price of $45.92, indicating a potential upside of 5.86%. 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
Bank of America	1 Sell rating(s)	8 Hold rating(s)	12 Buy rating(s)	1 Strong Buy rating(s)	2.59
HSBC	1 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.33

Is BAC or HSBC more profitable?

HSBC has a net margin of 15.70% compared to Bank of America's net margin of 12.48%. HSBC's return on equity of 10.71% beat Bank of America's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Bank of America	12.48%	10.09%	0.83%
HSBC	15.70%	10.71%	0.69%

Which has more risk and volatility, BAC or HSBC?

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

Does the MarketBeat Community believe in BAC or HSBC?

Bank of America received 1133 more outperform votes than HSBC when rated by MarketBeat users. Likewise, 65.19% of users gave Bank of America an outperform vote while only 59.04% of users gave HSBC an outperform vote.

Company	Underperform	Outperform
Bank of America	Outperform Votes 2028 65.19%	Underperform Votes 1083 34.81%
HSBC	Outperform Votes 895 59.04%	Underperform Votes 621 40.96%

Summary

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