HSBC Holdings plc (HSBC) vs Banco Santander, S.A. (SAN)

HSBC Holdings plc and Banco Santander, S.A. are both Banks Diversified companies. HSBC Holdings plc is the larger, with a market value of $324.0B against $195.8B — 1.7× the size. Banco Santander, S.A. trades at the lower P/E: 10.7× against 13.3×. Banco Santander, S.A. grew revenue faster over the last twelve months: 76.4% against −21.2%. HSBC Holdings plc has the higher net margin (61.9% vs 14.0%) and the lower return on invested capital (0.00% vs 13.5%). Both pay a dividend; HSBC Holdings plc yields more (3.97% vs 3.17%). Across the 18 metrics below, HSBC Holdings plc leads on 9 and Banco Santander, S.A. on 9.

Valuation

Metric HSBC SAN Banks Diversified median
P/E 13.32 10.73 11.97
P/S 8.06 1.38 2.60
P/B 1.64 1.39 1.59
Price to free cash flow 2.24 n/m 4.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.51% 9.32% 8.36%
Free cash flow yield 44.63% (23.70%) 7.80%

Profitability

Metric HSBC SAN Banks Diversified median
Gross margin 100.00% 50.17% 67.14%
Operating margin 0.00% 0.00% 0.00%
Net margin 61.91% 14.00% 18.44%
Free cash flow margin 0.00% (32.77%) 0.00%
Return on equity 0.00% 14.66% 10.89%
Return on assets 0.00% 0.87% 0.76%
Return on invested capital 0.00% 13.45% 0.00%

Growth

Metric HSBC SAN Banks Diversified median
Revenue growth (TTM) (21.23%) 76.39% 5.49%
EPS growth (last fiscal year) (2.42%) 972.92% 18.19%
Revenue growth, 5-year CAGR 15.19% 15.04% 14.34%
Net income growth, 5-year CAGR 40.18% 0.00% 10.77%

Health

Metric HSBC SAN Banks Diversified median
Debt to equity 0.67 3.89 1.43
Current ratio 0.85 0.24 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HSBC SAN Banks Diversified median
Dividend yield 3.97% 3.17% 2.29%
Payout ratio 0.53 0.34 0.27

Size

Metric HSBC SAN Banks Diversified median
Market cap 323.99b 195.78b 201.23b

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