HSBC vs. ITUB: HSBC vs. Itaú Unibanco Stock Comparison

Company Profile

HSBC (HSBC) and Itaú Unibanco (ITUB) are both classified in the Diversified Banks sub-industry within the broader Banks industry, placing them in the closest GICS peer bucket.

Both HSBC (HSBC) and Itaú Unibanco (ITUB) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both companies show strong equity returns, but Itaú Unibanco (ITUB) at 20.96% is the standout with ROE above its industry range; HSBC (HSBC) at 14.22% also sits in the top quartile.

HSBC (HSBC) at 41.16% retains a top-quartile share of revenue as profit, ahead of Itaú Unibanco (ITUB) at 32.46%, which keeps about the industry-typical share.

Neither side reports a meaningful operating margin: for HSBC (HSBC) in Banks and Itaú Unibanco (ITUB) in Banks, funding costs are part of the core business, so net margin and ROE are the cleaner profitability reads.

Profitability Metrics

Growth

Both HSBC (HSBC) at 5.38% and Itaú Unibanco (ITUB) at 4.21% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.

Itaú Unibanco (ITUB) at 9.21% is around its peer norm for EPS growth, while HSBC (HSBC) at -3.23% drops into the bottom quartile, signaling weaker earnings momentum.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: HSBC (HSBC) in Banks and Itaú Unibanco (ITUB) in Banks both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

debt-to-equity ratio is set aside for both: HSBC (HSBC) in Banks and Itaú Unibanco (ITUB) in Banks run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Dividends

Itaú Unibanco (ITUB) at 40.54% yields beyond its industry’s entire range — a level that invites a dividend-safety check — while HSBC (HSBC) at 0.86% sits in the bottom quartile of its peers.

Both HSBC (HSBC) at 53.57% and Itaú Unibanco (ITUB) at 70.75% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

Dividend Metrics

Valuation

Itaú Unibanco (ITUB) at 9.12 sits in the cheaper P/E ratio quartile, while HSBC (HSBC) at 11.38 is closer to its industry’s usual earnings multiple — a discount for ITUB, though growth and earnings durability still matter.

P/S ratio is set aside for both HSBC (HSBC) in Banks and Itaú Unibanco (ITUB) in Banks: without a conventional revenue line, pricing per dollar of sales isn’t meaningful, and book- or earnings-based multiples make the better comparison.

Both look rich against book: Itaú Unibanco (ITUB) at 1.79 sits in the upper P/B ratio quartile, and HSBC (HSBC) at 6.87 prices even higher, above its industry range.

Valuation Metrics