HSBC Holdings plc (HSBC) vs UBS Group AG (UBS)

HSBC Holdings plc and UBS Group AG are both Banks Diversified companies. HSBC Holdings plc is the larger, with a market value of $345.5B against $149.9B — 2.3× the size. HSBC Holdings plc trades at the lower P/E: 14.2× against 16.2×. UBS Group AG grew revenue faster over the last twelve months: −13.0% against −21.2%. HSBC Holdings plc has the higher net margin (61.9% vs 13.8%) and the lower return on invested capital (0.00% vs 3.60%). Both pay a dividend; HSBC Holdings plc yields more (8.17% vs 2.64%). Across the 20 metrics below, HSBC Holdings plc leads on 10 and UBS Group AG on 10.

Valuation

Metric HSBC UBS Banks Diversified median
P/E 14.22 16.17 13.67
P/S 8.61 2.22 2.72
P/B 1.75 1.71 1.69
Price to free cash flow 2.39 12.94 4.53
EV/EBITDA n/m n/m —
EV/Sales (15.53) 3.33 —
Earnings yield 7.03% 6.19% 7.33%
Free cash flow yield 41.81% 7.73% 7.63%

Profitability

Metric HSBC UBS Banks Diversified median
Gross margin 100.00% 73.15% 67.18%
Operating margin 0.00% 0.00% 0.00%
Net margin 61.91% 13.80% 18.44%
Free cash flow margin 0.00% 17.15% 1.96%
Return on equity 0.00% 10.63% 11.14%
Return on assets 0.00% 0.56% 0.74%
Return on invested capital 0.00% 3.60% 0.00%

Growth

Metric HSBC UBS Banks Diversified median
Revenue growth (TTM) (21.23%) (13.04%) 4.67%
EPS growth (last fiscal year) (2.42%) 55.26% —
Revenue growth, 5-year CAGR 15.19% 16.13% 14.34%
Net income growth, 5-year CAGR 40.18% 3.45% 10.77%

Health

Metric HSBC UBS Banks Diversified median
Debt to equity 0.67 3.84 1.39
Current ratio 0.85 1.10 0.87
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric HSBC UBS Banks Diversified median
Dividend yield 8.17% 2.64% 3.80%
Payout ratio 0.35 0.05 0.31

Size

Metric HSBC UBS Banks Diversified median
Market cap 345.54b 149.93b 186.46b

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