Bank of America Corporation (BAC) vs HSBC Holdings plc (HSBC)

Bank of America Corporation and HSBC Holdings plc are both Banks Diversified companies. Bank of America Corporation is the larger, with a market value of $361.5B against $324.0B — 1.1× the size. Bank of America Corporation trades at the lower P/E: 11.9× against 13.3×. Bank of America Corporation grew revenue faster over the last twelve months: −0.92% against −21.2%. HSBC Holdings plc has the higher net margin (61.9% vs 15.9%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; HSBC Holdings plc yields more (3.97% vs 2.26%). Across the 17 metrics below, Bank of America Corporation leads on 9 and HSBC Holdings plc on 8.

Valuation

Metric BAC HSBC Banks Diversified median
P/E 11.88 13.32 11.97
P/S 1.87 8.06 2.60
P/B 1.33 1.64 1.59
Price to free cash flow 3.85 2.24 4.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.42% 7.51% 8.36%
Free cash flow yield 25.96% 44.63% 7.80%

Profitability

Metric BAC HSBC Banks Diversified median
Gross margin 62.79% 100.00% 67.14%
Operating margin 0.00% 0.00% 0.00%
Net margin 15.88% 61.91% 18.44%
Free cash flow margin 0.00% 0.00% 0.00%
Return on equity 11.14% 0.00% 10.89%
Return on assets 0.90% 0.00% 0.76%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric BAC HSBC Banks Diversified median
Revenue growth (TTM) (0.92%) (21.23%) 5.49%
EPS growth (last fiscal year) 18.69% (2.42%) 18.19%
Revenue growth, 5-year CAGR 15.36% 15.19% 14.34%
Net income growth, 5-year CAGR 12.02% 40.18% 10.77%

Health

Metric BAC HSBC Banks Diversified median
Debt to equity 1.07 0.67 1.43
Current ratio 0.82 0.85 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric BAC HSBC Banks Diversified median
Dividend yield 2.26% 3.97% 2.29%
Payout ratio 0.27 0.53 0.27

Size

Metric BAC HSBC Banks Diversified median
Market cap 361.53b 323.99b 201.23b

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