BRK.B vs. HSBC: A Head-to-Head Stock Comparison
Here’s a clear look at BRK.B and HSBC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | BRK.B | HSBC |
|---|---|---|
| Company Name | Berkshire Hathaway Inc. | HSBC Holdings plc |
| Country | United States | United Kingdom |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Financial Services | Banks |
| GICS Industry | Financial Services | Banks |
| GICS Sub-Industry | Multi-Sector Holdings | Diversified Banks |
| Market Capitalization | 1,044.05 billion USD | 310.83 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | May 9, 1996 | July 16, 1999 |
| Security Type | Common Stock | ADR |
BRK.B is a standard domestic listing, while HSBC trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
BRK.B’s market capitalization (1,044.05 billion USD) is substantially larger than HSBC’s (310.83 billion USD), indicating a significant difference in their market valuations.
HSBC is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. BRK.B, on the other hand, is a domestic entity.
Historical Performance
This chart compares the performance of BRK.B 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.
Historical Performance at a Glance
| Symbol | BRK.B | HSBC |
|---|---|---|
| 5-Day Price Return | 1.37% | 1.29% |
| 13-Week Price Return | -2.84% | 1.53% |
| 26-Week Price Return | -1.72% | 23.32% |
| 52-Week Price Return | -3.46% | 52.25% |
| Month-to-Date Return | 2.15% | -0.74% |
| Year-to-Date Return | -3.66% | 14.07% |
| 10-Day Avg. Volume | 0.00M | 15.89M |
| 3-Month Avg. Volume | 0.00M | 14.75M |
| 3-Month Volatility | 15.15% | 38.04% |
| Beta | 0.23 | 1.68 |
HSBC carries a higher beta at 1.68, indicating it’s more sensitive to market moves, while BRK.B (beta: 0.23) exhibits greater stability.
Profitability
Return on Equity (TTM)
BRK.B
10.31%
Financial Services Industry
- Max
- 30.57%
- Q3
- 20.63%
- Median
- 12.67%
- Q1
- 3.99%
- Min
- -3.07%
BRK.B’s Return on Equity of 10.31% is on par with the norm for the Financial Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
HSBC
8.99%
Banks Industry
- Max
- 19.43%
- Q3
- 13.51%
- Median
- 10.45%
- Q1
- 9.01%
- Min
- 4.22%
HSBC’s Return on Equity of 8.99% is in the lower quartile for the Banks industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Net Profit Margin (TTM)
BRK.B
19.31%
Financial Services Industry
- Max
- 30.83%
- Q3
- 20.31%
- Median
- 11.19%
- Q1
- 4.41%
- Min
- -12.30%
BRK.B’s Net Profit Margin of 19.31% is aligned with the median group of its peers in the Financial Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
HSBC
34.16%
Banks Industry
- Max
- 45.10%
- Q3
- 32.88%
- Median
- 28.75%
- Q1
- 24.09%
- Min
- 13.46%
A Net Profit Margin of 34.16% places HSBC in the upper quartile for the Banks industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
BRK.B
12.52%
Financial Services Industry
- Max
- 79.44%
- Q3
- 40.45%
- Median
- 15.99%
- Q1
- 9.22%
- Min
- -5.90%
BRK.B’s Operating Profit Margin of 12.52% is around the midpoint for the Financial Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
HSBC
40.44%
Banks Industry
- Max
- 57.98%
- Q3
- 41.94%
- Median
- 36.16%
- Q1
- 31.00%
- Min
- 14.94%
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.
Profitability at a Glance
| Symbol | BRK.B | HSBC |
|---|---|---|
| Return on Equity (TTM) | 10.31% | 8.99% |
| Return on Assets (TTM) | 5.96% | 0.54% |
| Net Profit Margin (TTM) | 19.31% | 34.16% |
| Operating Profit Margin (TTM) | 12.52% | 40.44% |
| Gross Profit Margin (TTM) | 24.81% | -- |
Financial Strength
Current Ratio (MRQ)
BRK.B
1.23
Financial Services Industry
- Max
- 5.43
- Q3
- 3.16
- Median
- 1.26
- Q1
- 0.88
- Min
- 0.06
For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
HSBC
--
Banks Industry
- Max
- 0.20
- Q3
- 0.16
- Median
- 0.13
- Q1
- 0.09
- Min
- 0.06
For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio (MRQ)
BRK.B
0.18
Financial Services Industry
- Max
- 4.66
- Q3
- 2.69
- Median
- 1.06
- Q1
- 0.26
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.
HSBC
1.62
Banks Industry
- Max
- 3.55
- Q3
- 1.50
- Median
- 0.27
- Q1
- 0.11
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.
Interest Coverage Ratio (TTM)
BRK.B
0.57
Financial Services Industry
- Max
- 54.49
- Q3
- 24.71
- Median
- 3.63
- Q1
- 0.68
- Min
- -3.76
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.
HSBC
--
Banks Industry
- Max
- 1.51
- Q3
- 0.91
- Median
- 0.30
- Q1
- -0.30
- Min
- -0.91
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.
Financial Strength at a Glance
| Symbol | BRK.B | HSBC |
|---|---|---|
| Current Ratio (MRQ) | 1.23 | -- |
| Quick Ratio (MRQ) | 0.99 | -- |
| Debt-to-Equity Ratio (MRQ) | 0.18 | 1.62 |
| Interest Coverage Ratio (TTM) | 0.57 | -- |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | BRK.B | HSBC |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 4.40% | 15.51% |
| Revenue Growth (TTM vs Prior YoY) | 1.11% | 109.08% |
| 3-Year Revenue CAGR | 7.14% | 0.22% |
| 5-Year Revenue CAGR | 8.63% | 6.08% |
EPS Growth
EPS Growth at a Glance
| Symbol | BRK.B | HSBC |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 119.53% | 2.77% |
| EPS Growth (TTM vs Prior YoY) | -10.46% | 12.26% |
| 3-Year EPS CAGR | -- | 17.72% |
| 5-Year EPS CAGR | 11.79% | 37.51% |
Dividend
Dividend Yield (TTM)
BRK.B
0.00%
Financial Services Industry
- Max
- 6.46%
- Q3
- 3.01%
- Median
- 0.86%
- Q1
- 0.00%
- Min
- 0.00%
BRK.B 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
4.40%
Banks Industry
- Max
- 6.21%
- Q3
- 3.88%
- Median
- 2.98%
- Q1
- 2.16%
- Min
- 0.00%
With a Dividend Yield of 4.40%, HSBC offers a more attractive income stream than most of its peers in the Banks industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
BRK.B
0.00%
Financial Services Industry
- Max
- 69.44%
- Q3
- 30.71%
- Median
- 16.26%
- Q1
- 0.00%
- Min
- 0.00%
BRK.B 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
139.32%
Banks Industry
- Max
- 73.50%
- Q3
- 48.33%
- Median
- 37.39%
- Q1
- 27.97%
- Min
- 0.00%
HSBC’s Dividend Payout Ratio of 139.32% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | BRK.B | HSBC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 4.40% |
| Dividend Payout Ratio (TTM) | 0.00% | 139.32% |
Valuation
Price-to-Earnings Ratio (TTM)
BRK.B
14.44
Financial Services Industry
- Max
- 53.18
- Q3
- 27.39
- Median
- 14.80
- Q1
- 8.53
- Min
- 5.54
BRK.B’s P/E Ratio of 14.44 is within the middle range for the Financial Services 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
13.72
Banks Industry
- Max
- 19.94
- Q3
- 14.18
- Median
- 11.87
- Q1
- 10.28
- Min
- 5.10
HSBC’s P/E Ratio of 13.72 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.
Price-to-Sales Ratio (TTM)
BRK.B
2.79
Financial Services Industry
- Max
- 6.97
- Q3
- 3.88
- Median
- 1.95
- Q1
- 0.89
- Min
- 0.27
The P/S Ratio is often not a primary valuation tool in the Financial Services industry.
HSBC
1.74
Banks Industry
- Max
- 4.58
- Q3
- 3.15
- Median
- 2.35
- Q1
- 2.01
- Min
- 0.52
The P/S Ratio is often not a primary valuation tool in the Banks industry.
Price-to-Book Ratio (MRQ)
BRK.B
1.42
Financial Services Industry
- Max
- 7.73
- Q3
- 3.83
- Median
- 1.58
- Q1
- 1.07
- Min
- 0.66
BRK.B’s P/B Ratio of 1.42 is within the conventional range for the Financial Services 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
1.44
Banks Industry
- Max
- 2.04
- Q3
- 1.43
- Median
- 1.16
- Q1
- 1.01
- Min
- 0.57
HSBC’s P/B Ratio of 1.44 is in the upper tier for the Banks 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.
Valuation at a Glance
| Symbol | BRK.B | HSBC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 14.44 | 13.72 |
| Price-to-Sales Ratio (TTM) | 2.79 | 1.74 |
| Price-to-Book Ratio (MRQ) | 1.42 | 1.44 |
| Price-to-Free Cash Flow Ratio (TTM) | 43.83 | 12.19 |