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

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

Company Overview

ASML’s market capitalization stands at 312.40 billion USD, while HSBC’s is 212.14 billion USD, indicating their market valuations are broadly comparable.

ASML’s beta of 1.22 points to significantly higher volatility compared to HSBC (beta: 0.49), suggesting ASML has greater potential for both gains and losses relative to market movements.

ASML and HSBC are both American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies without directly engaging with overseas stock exchanges.

SymbolASMLHSBC
Company NameASML Holding N.V.HSBC Holdings plc
CountryNLGB
SectorTechnologyFinancial Services
IndustrySemiconductorsBanks - Diversified
CEOChristophe D. FouquetGeorges Bahjat Elhedery
Price794.5 USD60.67 USD
Market Cap312.40 billion USD212.14 billion USD
Beta1.220.49
ExchangeNASDAQNYSE
IPO DateMarch 15, 1995July 16, 1999
ADRYesYes

Historical Performance

This chart compares the performance of ASML 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.

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

Profitability

Return on Equity

ASML

52.08%

Semiconductors Industry

Max
41.84%
Q3
15.81%
Median
6.31%
Q1
-5.54%
Min
-30.12%

ASML’s Return on Equity of 52.08% is exceptionally high, placing it well beyond the typical range for the Semiconductors industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

ASML vs. HSBC: A comparison of their ROE against their respective Semiconductors and Banks - Diversified industry benchmarks.

Return on Invested Capital

ASML

30.91%

Semiconductors Industry

Max
30.91%
Q3
11.34%
Median
4.08%
Q1
-2.17%
Min
-19.59%

In the upper quartile for the Semiconductors industry, ASML’s Return on Invested Capital of 30.91% signifies a highly effective use of its capital to generate profits when compared to its peers.

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.

ASML vs. HSBC: A comparison of their ROIC against their respective Semiconductors and Banks - Diversified industry benchmarks.

Net Profit Margin

ASML

28.33%

Semiconductors Industry

Max
51.69%
Q3
19.67%
Median
8.56%
Q1
-5.44%
Min
-38.60%

A Net Profit Margin of 28.33% places ASML in the upper quartile for the Semiconductors 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.

ASML vs. HSBC: A comparison of their Net Profit Margin against their respective Semiconductors and Banks - Diversified industry benchmarks.

Operating Profit Margin

ASML

33.76%

Semiconductors Industry

Max
58.03%
Q3
22.12%
Median
8.40%
Q1
-3.73%
Min
-36.14%

An Operating Profit Margin of 33.76% places ASML in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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.

ASML vs. HSBC: A comparison of their Operating Margin against their respective Semiconductors and Banks - Diversified industry benchmarks.

Profitability at a Glance

SymbolASMLHSBC
Return on Equity (TTM)52.08%11.02%
Return on Assets (TTM)19.14%0.68%
Return on Invested Capital (TTM)30.91%0.94%
Net Profit Margin (TTM)28.33%28.82%
Operating Profit Margin (TTM)33.76%50.51%
Gross Profit Margin (TTM)52.01%94.33%

Financial Strength

Current Ratio

ASML

1.52

Semiconductors Industry

Max
9.10
Q3
5.23
Median
3.09
Q1
2.49
Min
1.02

ASML’s Current Ratio of 1.52 falls into the lower quartile for the Semiconductors industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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.

ASML vs. HSBC: A comparison of their Current Ratio against their respective Semiconductors and Banks - Diversified industry benchmarks.

Debt-to-Equity Ratio

ASML

0.21

Semiconductors Industry

Max
0.97
Q3
0.46
Median
0.21
Q1
0.05
Min
0.00

ASML’s Debt-to-Equity Ratio of 0.21 is typical for the Semiconductors 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.

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

Interest Coverage Ratio

ASML

--

Semiconductors Industry

Max
36.25
Q3
29.12
Median
7.01
Q1
-1.22
Min
-18.18

Interest Coverage Ratio data for ASML is currently unavailable.

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.

ASML vs. HSBC: A comparison of their Interest Coverage against their respective Semiconductors and Banks - Diversified industry benchmarks.

Financial Strength at a Glance

SymbolASMLHSBC
Current Ratio (TTM)1.521.40
Quick Ratio (TTM)0.911.40
Debt-to-Equity Ratio (TTM)0.212.49
Debt-to-Asset Ratio (TTM)0.080.16
Net Debt-to-EBITDA Ratio (TTM)-0.47-240.03
Interest Coverage Ratio (TTM)--0.97

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

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

Dividend

Dividend Yield

ASML

0.85%

Semiconductors Industry

Max
6.48%
Q3
0.93%
Median
0.00%
Q1
0.00%
Min
0.00%

ASML’s Dividend Yield of 0.85% is consistent with its peers in the Semiconductors industry, providing a dividend return that is standard for its sector.

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.

ASML vs. HSBC: A comparison of their Dividend Yield against their respective Semiconductors and Banks - Diversified industry benchmarks.

Dividend Payout Ratio

ASML

28.49%

Semiconductors Industry

Max
204.29%
Q3
31.85%
Median
0.00%
Q1
0.00%
Min
0.00%

ASML’s Dividend Payout Ratio of 28.49% is within the typical range for the Semiconductors industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

ASML vs. HSBC: A comparison of their Payout Ratio against their respective Semiconductors and Banks - Diversified industry benchmarks.

Dividend at a Glance

SymbolASMLHSBC
Dividend Yield (TTM)0.85%5.72%
Dividend Payout Ratio (TTM)28.49%0.00%

Valuation

Price-to-Earnings Ratio

ASML

29.72

Semiconductors Industry

Max
86.15
Q3
47.38
Median
27.87
Q1
18.89
Min
4.73

ASML’s P/E Ratio of 29.72 is within the middle range for the Semiconductors 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.

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

Forward P/E to Growth Ratio

ASML

1.90

Semiconductors Industry

Max
4.73
Q3
2.80
Median
1.11
Q1
0.68
Min
0.01

The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.

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.

ASML vs. HSBC: A comparison of their Forward PEG Ratio against their respective Semiconductors and Banks - Diversified industry benchmarks.

Price-to-Sales Ratio

ASML

8.44

Semiconductors Industry

Max
21.96
Q3
10.21
Median
4.45
Q1
2.32
Min
0.48

ASML’s P/S Ratio of 8.44 aligns with the market consensus for the Semiconductors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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.

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

Price-to-Book Ratio

ASML

14.78

Semiconductors Industry

Max
13.12
Q3
6.49
Median
3.31
Q1
1.74
Min
0.23

At 14.78, ASML’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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.

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

Valuation at a Glance

SymbolASMLHSBC
Price-to-Earnings Ratio (P/E, TTM)29.7210.37
Forward PEG Ratio (TTM)1.901.32
Price-to-Sales Ratio (P/S, TTM)8.442.94
Price-to-Book Ratio (P/B, TTM)14.781.13
Price-to-Free Cash Flow Ratio (P/FCF, TTM)27.93--
EV-to-EBITDA (TTM)22.09-470.72
EV-to-Sales (TTM)8.276.00