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

Updated on August 23, 2025

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

Company Profile

Both BABA and HSBC are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.

Symbol	BABA	HSBC
Company Name	Alibaba Group Holding Limited	HSBC Holdings plc
Country	Hong Kong	United Kingdom
GICS Sector	Consumer Discretionary	Financials
GICS Industry	Broadline Retail	Banks
Market Capitalization	287.31 billion USD	226.88 billion USD
Exchange	NYSE	NYSE
Listing Date	September 19, 2014	July 16, 1999
Security Type	ADR	ADR

Historical Performance

This chart compares the performance of BABA 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.

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

Historical Performance at a Glance

Symbol	BABA	HSBC
5-Day Price Return	-2.28%	-1.12%
13-Week Price Return	-2.82%	6.24%
26-Week Price Return	-0.04%	7.85%
52-Week Price Return	42.40%	44.56%
Month-to-Date Return	-0.95%	2.37%
Year-to-Date Return	40.92%	20.30%
10-Day Avg. Volume	11.26M	13.79M
3-Month Avg. Volume	14.09M	18.07M
3-Month Volatility	33.97%	16.86%
Beta	0.11	0.07

Profitability

Return on Equity (TTM)

BABA

13.27%

Broadline Retail Industry

Max: 49.17%
Q3: 28.98%
Median: 19.22%
Q1: 10.86%
Min: -11.14%

BABA’s Return on Equity of 13.27% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

HSBC

13.86%

Banks Industry

Max: 26.37%
Q3: 15.92%
Median: 12.25%
Q1: 8.69%
Min: 0.15%

HSBC’s Return on Equity of 13.86% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

BABA vs. HSBC: A comparison of their Return on Equity (TTM) against their respective Broadline Retail and Banks industry benchmarks.

Net Profit Margin (TTM)

BABA

12.99%

Broadline Retail Industry

Max: 19.78%
Q3: 11.90%
Median: 8.63%
Q1: 5.21%
Min: 0.82%

A Net Profit Margin of 12.99% places BABA in the upper quartile for the Broadline Retail industry, signifying strong profitability and more effective cost management than most of its peers.

HSBC

34.16%

Banks Industry

Max: 54.20%
Q3: 35.70%
Median: 28.97%
Q1: 22.53%
Min: 6.98%

HSBC’s Net Profit Margin of 34.16% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

BABA vs. HSBC: A comparison of their Net Profit Margin (TTM) against their respective Broadline Retail and Banks industry benchmarks.

Operating Profit Margin (TTM)

BABA

14.14%

Broadline Retail Industry

Max: 27.23%
Q3: 15.96%
Median: 11.13%
Q1: 8.31%
Min: 1.77%

BABA’s Operating Profit Margin of 14.14% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

HSBC

40.44%

Banks Industry

Max: 63.35%
Q3: 44.59%
Median: 37.24%
Q1: 28.25%
Min: 13.37%

HSBC’s Operating Profit Margin of 40.44% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

BABA vs. HSBC: A comparison of their Operating Profit Margin (TTM) against their respective Broadline Retail and Banks industry benchmarks.

Profitability at a Glance

Symbol	BABA	HSBC
Return on Equity (TTM)	13.27%	13.86%
Return on Assets (TTM)	7.19%	0.85%
Net Profit Margin (TTM)	12.99%	34.16%
Operating Profit Margin (TTM)	14.14%	40.44%
Gross Profit Margin (TTM)	39.95%	--

Financial Strength

Current Ratio (MRQ)

BABA

1.55

Broadline Retail Industry

Max: 3.54
Q3: 2.42
Median: 1.49
Q1: 1.22
Min: 0.67

BABA’s Current Ratio of 1.55 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.

HSBC

Banks Industry

Max: --
Q3: --
Median: --
Q1: --
Min: --

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

BABA vs. HSBC: A comparison of their Current Ratio (MRQ) against their respective Broadline Retail and Banks industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BABA

0.23

Broadline Retail Industry

Max: 2.14
Q3: 1.34
Median: 0.63
Q1: 0.27
Min: 0.00

Falling into the lower quartile for the Broadline Retail industry, BABA’s Debt-to-Equity Ratio of 0.23 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

HSBC

1.91

Banks Industry

Max: 4.75
Q3: 2.62
Median: 1.02
Q1: 0.39
Min: 0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

BABA vs. HSBC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Broadline Retail and Banks industry benchmarks.

Interest Coverage Ratio (TTM)

BABA

9.56

Broadline Retail Industry

Max: 37.34
Q3: 20.63
Median: 11.28
Q1: 4.22
Min: -19.29

BABA’s Interest Coverage Ratio of 9.56 is positioned comfortably within the norm for the Broadline Retail industry, indicating a standard and healthy capacity to cover its interest payments.

HSBC

Banks Industry

Max: --
Q3: --
Median: --
Q1: --
Min: --

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

BABA vs. HSBC: A comparison of their Interest Coverage Ratio (TTM) against their respective Broadline Retail and Banks industry benchmarks.

Financial Strength at a Glance

Symbol	BABA	HSBC
Current Ratio (MRQ)	1.55	--
Quick Ratio (MRQ)	1.08	--
Debt-to-Equity Ratio (MRQ)	0.23	1.91
Interest Coverage Ratio (TTM)	9.56	--

Growth

Revenue Growth

BABA vs. HSBC: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BABA vs. HSBC: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BABA

2.79%

Broadline Retail Industry

Max: 5.46%
Q3: 2.38%
Median: 0.43%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 2.79%, BABA offers a more attractive income stream than most of its peers in the Broadline Retail industry, signaling a strong commitment to shareholder returns.

HSBC

6.14%

Banks Industry

Max: 10.27%
Q3: 5.83%
Median: 3.81%
Q1: 2.50%
Min: 0.00%

With a Dividend Yield of 6.14%, HSBC offers a more attractive income stream than most of its peers in the Banks industry, signaling a strong commitment to shareholder returns.

BABA vs. HSBC: A comparison of their Dividend Yield (TTM) against their respective Broadline Retail and Banks industry benchmarks.

Dividend Payout Ratio (TTM)

BABA

103.01%

Broadline Retail Industry

Max: 131.17%
Q3: 63.48%
Median: 29.43%
Q1: 0.00%
Min: 0.00%

BABA’s Dividend Payout Ratio of 103.01% is in the upper quartile for the Broadline Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

HSBC

71.79%

Banks Industry

Max: 147.07%
Q3: 80.55%
Median: 54.40%
Q1: 35.71%
Min: 0.00%

HSBC’s Dividend Payout Ratio of 71.79% is within the typical range for the Banks industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

BABA vs. HSBC: A comparison of their Dividend Payout Ratio (TTM) against their respective Broadline Retail and Banks industry benchmarks.

Dividend at a Glance

Symbol	BABA	HSBC
Dividend Yield (TTM)	2.79%	6.14%
Dividend Payout Ratio (TTM)	103.01%	71.79%

Valuation

Price-to-Earnings Ratio (TTM)

BABA

16.04

Broadline Retail Industry

Max: 66.12
Q3: 35.17
Median: 16.29
Q1: 10.47
Min: 5.94

BABA’s P/E Ratio of 16.04 is within the middle range for the Broadline 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

8.44

Banks Industry

Max: 20.05
Q3: 12.65
Median: 10.21
Q1: 7.54
Min: 2.74

HSBC’s P/E Ratio of 8.44 is within the middle range for the Banks industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

BABA vs. HSBC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Broadline Retail and Banks industry benchmarks.

Price-to-Sales Ratio (TTM)

BABA

2.08

Broadline Retail Industry

Max: 5.40
Q3: 3.33
Median: 2.04
Q1: 0.80
Min: 0.16

BABA’s P/S Ratio of 2.08 aligns with the market consensus for the Broadline Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

HSBC

1.74

Banks Industry

Max: 5.06
Q3: 2.98
Median: 2.24
Q1: 1.59
Min: 0.45

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

BABA vs. HSBC: A comparison of their Price-to-Sales Ratio (TTM) against their respective Broadline Retail and Banks industry benchmarks.

Price-to-Book Ratio (MRQ)

BABA

2.23

Broadline Retail Industry

Max: 9.06
Q3: 5.22
Median: 3.48
Q1: 1.90
Min: 0.74

BABA’s P/B Ratio of 2.23 is within the conventional range for the Broadline Retail 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.

HSBC

1.08

Banks Industry

Max: 2.18
Q3: 1.36
Median: 1.09
Q1: 0.81
Min: 0.20

HSBC’s P/B Ratio of 1.08 is within the conventional range for the Banks 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.

BABA vs. HSBC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Broadline Retail and Banks industry benchmarks.

Valuation at a Glance

Symbol	BABA	HSBC
Price-to-Earnings Ratio (TTM)	16.04	8.44
Price-to-Sales Ratio (TTM)	2.08	1.74
Price-to-Book Ratio (MRQ)	2.23	1.08
Price-to-Free Cash Flow Ratio (TTM)	26.78	4.65