Seek Returns logo

AMZN vs. HSBC: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AMZN and HSBC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AMZN’s market capitalization of 2,371.81 billion USD is substantially larger than HSBC’s 212.14 billion USD, indicating a significant difference in their market valuations.

AMZN’s beta of 1.33 points to significantly higher volatility compared to HSBC (beta: 0.49), suggesting AMZN has greater potential for both gains and losses relative to market movements.

HSBC is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AMZN, on the other hand, is a domestic entity.

SymbolAMZNHSBC
Company NameAmazon.com, Inc.HSBC Holdings plc
CountryUSGB
SectorConsumer CyclicalFinancial Services
IndustrySpecialty RetailBanks - Diversified
CEOAndrew R. JassyGeorges Bahjat Elhedery
Price223.41 USD60.67 USD
Market Cap2,371.81 billion USD212.14 billion USD
Beta1.330.49
ExchangeNASDAQNYSE
IPO DateMay 15, 1997July 16, 1999
ADRNoYes

Historical Performance

This chart compares the performance of AMZN and HSBC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AMZN vs. HSBC: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AMZN

24.26%

Specialty Retail Industry

Max
70.52%
Q3
29.03%
Median
10.90%
Q1
-7.86%
Min
-57.43%

AMZN’s Return on Equity of 24.26% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

HSBC

11.02%

Banks - Diversified Industry

Max
20.93%
Q3
14.73%
Median
12.33%
Q1
9.14%
Min
5.86%

HSBC’s Return on Equity of 11.02% is on par with the norm for the Banks - Diversified industry, indicating its profitability relative to shareholder equity is typical for the sector.

AMZN vs. HSBC: A comparison of their ROE against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Return on Invested Capital

AMZN

13.10%

Specialty Retail Industry

Max
29.46%
Q3
13.75%
Median
8.05%
Q1
0.80%
Min
-17.95%

AMZN’s Return on Invested Capital of 13.10% is in line with the norm for the Specialty Retail industry, reflecting a standard level of efficiency in generating profits from its capital base.

HSBC

0.94%

Banks - Diversified Industry

Max
4.52%
Q3
2.95%
Median
1.89%
Q1
0.86%
Min
0.18%

Return on Invested Capital is often not a primary measure of capital efficiency in the Banks - Diversified industry.

AMZN vs. HSBC: A comparison of their ROIC against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Net Profit Margin

AMZN

10.14%

Specialty Retail Industry

Max
19.78%
Q3
8.49%
Median
3.43%
Q1
-0.69%
Min
-9.88%

A Net Profit Margin of 10.14% places AMZN in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.

HSBC

28.82%

Banks - Diversified Industry

Max
33.40%
Q3
26.40%
Median
19.24%
Q1
14.99%
Min
7.95%

A Net Profit Margin of 28.82% places HSBC in the upper quartile for the Banks - Diversified industry, signifying strong profitability and more effective cost management than most of its peers.

AMZN vs. HSBC: A comparison of their Net Profit Margin against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Operating Profit Margin

AMZN

11.02%

Specialty Retail Industry

Max
24.47%
Q3
11.10%
Median
5.85%
Q1
0.66%
Min
-12.62%

AMZN’s Operating Profit Margin of 11.02% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

HSBC

50.51%

Banks - Diversified Industry

Max
50.90%
Q3
37.76%
Median
28.44%
Q1
15.73%
Min
8.60%

An Operating Profit Margin of 50.51% places HSBC in the upper quartile for the Banks - Diversified industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AMZN vs. HSBC: A comparison of their Operating Margin against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Profitability at a Glance

SymbolAMZNHSBC
Return on Equity (TTM)24.26%11.02%
Return on Assets (TTM)10.25%0.68%
Return on Invested Capital (TTM)13.10%0.94%
Net Profit Margin (TTM)10.14%28.82%
Operating Profit Margin (TTM)11.02%50.51%
Gross Profit Margin (TTM)49.16%94.33%

Financial Strength

Current Ratio

AMZN

1.05

Specialty Retail Industry

Max
3.24
Q3
1.99
Median
1.42
Q1
1.02
Min
0.54

AMZN’s Current Ratio of 1.05 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.

HSBC

1.40

Banks - Diversified Industry

Max
0.67
Q3
0.49
Median
0.39
Q1
0.28
Min
0.06

For the Banks - Diversified industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AMZN vs. HSBC: A comparison of their Current Ratio against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Debt-to-Equity Ratio

AMZN

0.44

Specialty Retail Industry

Max
2.72
Q3
1.42
Median
0.87
Q1
0.35
Min
0.01

AMZN’s Debt-to-Equity Ratio of 0.44 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

HSBC

2.49

Banks - Diversified Industry

Max
4.98
Q3
3.65
Median
3.13
Q1
1.73
Min
0.09

HSBC’s Debt-to-Equity Ratio of 2.49 is typical for the Banks - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AMZN vs. HSBC: A comparison of their D/E Ratio against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Interest Coverage Ratio

AMZN

31.13

Specialty Retail Industry

Max
37.34
Q3
17.19
Median
4.28
Q1
0.11
Min
-23.60

AMZN’s Interest Coverage Ratio of 31.13 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

HSBC

0.97

Banks - Diversified Industry

Max
0.98
Q3
0.78
Median
0.55
Q1
0.31
Min
0.09

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks - Diversified industry.

AMZN vs. HSBC: A comparison of their Interest Coverage against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Financial Strength at a Glance

SymbolAMZNHSBC
Current Ratio (TTM)1.051.40
Quick Ratio (TTM)0.841.40
Debt-to-Equity Ratio (TTM)0.442.49
Debt-to-Asset Ratio (TTM)0.210.16
Net Debt-to-EBITDA Ratio (TTM)0.50-240.03
Interest Coverage Ratio (TTM)31.130.97

Growth

The following charts compare key year-over-year (YoY) growth metrics for AMZN and HSBC. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AMZN vs. HSBC: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AMZN vs. HSBC: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AMZN vs. HSBC: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AMZN

0.00%

Specialty Retail Industry

Max
5.54%
Q3
1.52%
Median
0.00%
Q1
0.00%
Min
0.00%

AMZN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

HSBC

5.72%

Banks - Diversified Industry

Max
7.73%
Q3
4.16%
Median
3.24%
Q1
2.27%
Min
0.00%

With a Dividend Yield of 5.72%, HSBC offers a more attractive income stream than most of its peers in the Banks - Diversified industry, signaling a strong commitment to shareholder returns.

AMZN vs. HSBC: A comparison of their Dividend Yield against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Dividend Payout Ratio

AMZN

0.00%

Specialty Retail Industry

Max
177.64%
Q3
9.49%
Median
0.00%
Q1
0.00%
Min
0.00%

AMZN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

HSBC

0.00%

Banks - Diversified Industry

Max
84.94%
Q3
39.11%
Median
26.91%
Q1
0.00%
Min
0.00%

HSBC has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

AMZN vs. HSBC: A comparison of their Payout Ratio against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Dividend at a Glance

SymbolAMZNHSBC
Dividend Yield (TTM)0.00%5.72%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio

AMZN

35.92

Specialty Retail Industry

Max
81.45
Q3
42.51
Median
25.40
Q1
12.72
Min
1.88

AMZN’s P/E Ratio of 35.92 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

HSBC

10.37

Banks - Diversified Industry

Max
14.13
Q3
13.37
Median
11.90
Q1
9.29
Min
7.43

HSBC’s P/E Ratio of 10.37 is within the middle range for the Banks - Diversified industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AMZN vs. HSBC: A comparison of their P/E Ratio against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Forward P/E to Growth Ratio

AMZN

1.72

Specialty Retail Industry

Max
5.90
Q3
2.79
Median
1.76
Q1
0.69
Min
0.00

AMZN’s Forward PEG Ratio of 1.72 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

HSBC

1.32

Banks - Diversified Industry

Max
1.98
Q3
1.41
Median
1.15
Q1
0.77
Min
0.45

HSBC’s Forward PEG Ratio of 1.32 is within the middle range of its peers in the Banks - Diversified industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

AMZN vs. HSBC: A comparison of their Forward PEG Ratio against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Price-to-Sales Ratio

AMZN

3.65

Specialty Retail Industry

Max
5.26
Q3
2.60
Median
1.29
Q1
0.41
Min
0.06

AMZN’s P/S Ratio of 3.65 is in the upper echelon for the Specialty Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

HSBC

2.94

Banks - Diversified Industry

Max
4.15
Q3
2.92
Median
2.29
Q1
1.83
Min
0.94

The P/S Ratio is often not a primary valuation tool in the Banks - Diversified industry.

AMZN vs. HSBC: A comparison of their P/S Ratio against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Price-to-Book Ratio

AMZN

7.74

Specialty Retail Industry

Max
12.73
Q3
6.96
Median
3.28
Q1
1.42
Min
0.24

AMZN’s P/B Ratio of 7.74 is in the upper tier for the Specialty Retail industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

HSBC

1.13

Banks - Diversified Industry

Max
1.89
Q3
1.47
Median
1.23
Q1
1.10
Min
0.65

HSBC’s P/B Ratio of 1.13 is within the conventional range for the Banks - Diversified industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AMZN vs. HSBC: A comparison of their P/B Ratio against their respective Specialty Retail and Banks - Diversified industry benchmarks.

Valuation at a Glance

SymbolAMZNHSBC
Price-to-Earnings Ratio (P/E, TTM)35.9210.37
Forward PEG Ratio (TTM)1.721.32
Price-to-Sales Ratio (P/S, TTM)3.652.94
Price-to-Book Ratio (P/B, TTM)7.741.13
Price-to-Free Cash Flow Ratio (P/FCF, TTM)113.97--
EV-to-EBITDA (TTM)18.07-470.72
EV-to-Sales (TTM)3.756.00