Citigroup Inc. (C) vs HSBC Holdings plc (HSBC)

Citigroup Inc. and HSBC Holdings plc are both Banks Diversified companies. HSBC Holdings plc is the larger, with a market value of $345.5B against $222.2B — 1.6× the size. HSBC Holdings plc trades at the lower P/E: 14.2× against 14.4×. Citigroup Inc. grew revenue faster over the last twelve months: 4.01% against −21.2%. HSBC Holdings plc has the higher net margin (61.9% vs 9.44%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; HSBC Holdings plc yields more (8.17% vs 3.96%). Across the 18 metrics below, HSBC Holdings plc leads on 11 and Citigroup Inc. on 7.

Valuation

Metric C HSBC Banks Diversified median
P/E 14.42 14.22 13.67
P/S 1.31 8.61 2.72
P/B 1.17 1.75 1.69
Price to free cash flow n/m 2.39 4.53
EV/EBITDA n/m n/m —
EV/Sales (4.84) (15.53) —
Earnings yield 6.93% 7.03% 7.33%
Free cash flow yield (10.69%) 41.81% 7.63%

Profitability

Metric C HSBC Banks Diversified median
Gross margin 52.38% 100.00% 67.18%
Operating margin 0.00% 0.00% 0.00%
Net margin 9.44% 61.91% 18.44%
Free cash flow margin (14.00%) 0.00% 1.96%
Return on equity 8.38% 0.00% 11.14%
Return on assets 0.60% 0.00% 0.74%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric C HSBC Banks Diversified median
Revenue growth (TTM) 4.01% (21.23%) 4.67%
EPS growth (last fiscal year) 17.68% (2.42%) —
Revenue growth, 5-year CAGR 13.63% 15.19% 14.34%
Net income growth, 5-year CAGR 5.68% 40.18% 10.77%

Health

Metric C HSBC Banks Diversified median
Debt to equity 1.56 0.67 1.39
Current ratio 1.05 0.85 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric C HSBC Banks Diversified median
Dividend yield 3.96% 8.17% 3.80%
Payout ratio 0.32 0.35 0.31

Size

Metric C HSBC Banks Diversified median
Market cap 222.18b 345.54b 186.46b

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