HSBC Holdings plc (HSBC) vs JPMorgan Chase & Co. (JPM)

HSBC Holdings plc and JPMorgan Chase & Co. are both Banks Diversified companies. JPMorgan Chase & Co. is the larger, with a market value of $902.3B against $345.5B — 2.6× the size. HSBC Holdings plc trades at the lower P/E: 14.2× against 14.7×. JPMorgan Chase & Co. grew revenue faster over the last twelve months: 8.04% against −21.2%. HSBC Holdings plc has the higher net margin (61.9% vs 21.4%) and the higher return on invested capital (0.00% vs 0.00%). Both pay a dividend; HSBC Holdings plc yields more (8.17% vs 2.49%). Across the 18 metrics below, HSBC Holdings plc leads on 11 and JPMorgan Chase & Co. on 7.

Valuation

Metric HSBC JPM Banks Diversified median
P/E 14.22 14.67 13.67
P/S 8.61 3.10 2.72
P/B 1.75 2.61 1.69
Price to free cash flow 2.39 n/m 4.53
EV/EBITDA n/m n/m —
EV/Sales (15.53) (1.46) —
Earnings yield 7.03% 6.82% 7.33%
Free cash flow yield 41.81% (17.61%) 7.63%

Profitability

Metric HSBC JPM Banks Diversified median
Gross margin 100.00% 67.00% 67.18%
Operating margin 0.00% 0.00% 0.00%
Net margin 61.91% 21.38% 18.44%
Free cash flow margin 0.00% (54.61%) 1.96%
Return on equity 0.00% 18.43% 11.14%
Return on assets 0.00% 1.33% 0.74%
Return on invested capital 0.00% 0.00% 0.00%

Growth

Metric HSBC JPM Banks Diversified median
Revenue growth (TTM) (21.23%) 8.04% 4.67%
EPS growth (last fiscal year) (2.42%) 1.37% —
Revenue growth, 5-year CAGR 15.19% 16.63% 14.34%
Net income growth, 5-year CAGR 40.18% 15.23% 10.77%

Health

Metric HSBC JPM Banks Diversified median
Debt to equity 0.67 1.23 1.39
Current ratio 0.85 0.85 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HSBC JPM Banks Diversified median
Dividend yield 8.17% 2.49% 3.80%
Payout ratio 0.35 0.26 0.31

Size

Metric HSBC JPM Banks Diversified median
Market cap 345.54b 902.32b 186.46b

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