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

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

Company Profile

SymbolHSBCJPM
Company NameHSBC Holdings plcJPMorgan Chase & Co.
CountryUnited KingdomUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupBanksBanks
GICS IndustryBanksBanks
GICS Sub-IndustryDiversified BanksDiversified Banks
Market Capitalization310.55 billion USD803.85 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJuly 16, 1999March 17, 1980
Security TypeADRCommon Stock

HSBC trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, JPM is a standard domestic listing.

JPM’s market capitalization (803.85 billion USD) is significantly greater than HSBC’s (310.55 billion USD), highlighting its more substantial market valuation.

HSBC trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, JPM is a standard domestic listing.

Historical Performance

This chart compares the performance of HSBC and JPM 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.

HSBC
JPM
Loading price history…
HSBC vs. JPM: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolHSBCJPM
5-Day Price Return3.95%-3.04%
13-Week Price Return4.13%-6.95%
26-Week Price Return24.45%-3.02%
52-Week Price Return51.85%18.54%
Month-to-Date Return-1.38%-4.22%
Year-to-Date Return13.34%-6.90%
10-Day Avg. Volume15.30M8.01M
3-Month Avg. Volume14.62M10.27M
3-Month Volatility38.40%23.96%
Beta1.681.03

HSBC’s beta of 1.68 points to significantly higher volatility compared to JPM (beta: 1.03), suggesting HSBC has greater potential for both gains and losses relative to market movements.

Profitability

Return on Equity (TTM)

HSBC

6.51%

Banks Industry
Max
19.15%
Q3
13.35%
Median
10.45%
Q1
8.98%
Min
4.22%

HSBC’s Return on Equity of 6.51% 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.

JPM

16.32%

Banks Industry
Max
19.15%
Q3
13.35%
Median
10.45%
Q1
8.98%
Min
4.22%

In the upper quartile for the Banks industry, JPM’s Return on Equity of 16.32% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

HSBC vs. JPM: A comparison of their Return on Equity (TTM) against the Banks industry benchmark.

Net Profit Margin (TTM)

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.

JPM

33.26%

Banks Industry
Max
45.10%
Q3
32.88%
Median
28.75%
Q1
24.09%
Min
13.46%

A Net Profit Margin of 33.26% places JPM in the upper quartile for the Banks industry, signifying strong profitability and more effective cost management than most of its peers.

HSBC vs. JPM: A comparison of their Net Profit Margin (TTM) against the Banks industry benchmark.

Operating Profit Margin (TTM)

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.

JPM

41.23%

Banks Industry
Max
57.98%
Q3
41.94%
Median
36.16%
Q1
31.00%
Min
14.94%

JPM’s Operating Profit Margin of 41.23% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

HSBC vs. JPM: A comparison of their Operating Profit Margin (TTM) against the Banks industry benchmark.

Profitability at a Glance

SymbolHSBCJPM
Return on Equity (TTM)6.51%16.32%
Return on Assets (TTM)0.39%1.28%
Net Profit Margin (TTM)34.16%33.26%
Operating Profit Margin (TTM)40.44%41.23%
Gross Profit Margin (TTM)----

Financial Strength

Current Ratio (MRQ)

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.

JPM

--

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.

HSBC vs. JPM: A comparison of their Current Ratio (MRQ) against the Banks industry benchmark.

Debt-to-Equity Ratio (MRQ)

HSBC

1.62

Banks Industry
Max
3.55
Q3
1.50
Median
0.29
Q1
0.12
Min
0.00

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

JPM

3.39

Banks Industry
Max
3.55
Q3
1.50
Median
0.29
Q1
0.12
Min
0.00

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

HSBC vs. JPM: A comparison of their Debt-to-Equity Ratio (MRQ) against the Banks industry benchmark.

Interest Coverage Ratio (TTM)

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.

JPM

--

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.

HSBC vs. JPM: A comparison of their Interest Coverage Ratio (TTM) against the Banks industry benchmark.

Financial Strength at a Glance

SymbolHSBCJPM
Current Ratio (MRQ)----
Quick Ratio (MRQ)----
Debt-to-Equity Ratio (MRQ)1.623.39
Interest Coverage Ratio (TTM)----

Growth

Revenue Growth

HSBC vs. JPM: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolHSBCJPM
Revenue Growth (MRQ vs Prior YoY)15.51%73.97%
Revenue Growth (TTM vs Prior YoY)109.08%108.98%
3-Year Revenue CAGR0.22%3.36%
5-Year Revenue CAGR6.08%7.73%

EPS Growth

HSBC vs. JPM: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolHSBCJPM
EPS Growth (MRQ vs Prior YoY)2.77%16.95%
EPS Growth (TTM vs Prior YoY)12.26%2.39%
3-Year EPS CAGR17.72%17.37%
5-Year EPS CAGR37.51%16.80%

Dividend

Dividend Yield (TTM)

HSBC

4.37%

Banks Industry
Max
5.70%
Q3
3.66%
Median
2.94%
Q1
2.14%
Min
0.00%

With a Dividend Yield of 4.37%, HSBC offers a more attractive income stream than most of its peers in the Banks industry, signaling a strong commitment to shareholder returns.

JPM

2.06%

Banks Industry
Max
5.70%
Q3
3.66%
Median
2.94%
Q1
2.14%
Min
0.00%

JPM’s Dividend Yield of 2.06% is in the lower quartile for the Banks industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

HSBC vs. JPM: A comparison of their Dividend Yield (TTM) against the Banks industry benchmark.

Dividend Payout Ratio (TTM)

HSBC

139.32%

Banks Industry
Max
79.41%
Q3
50.12%
Median
37.72%
Q1
28.71%
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.

JPM

29.14%

Banks Industry
Max
79.41%
Q3
50.12%
Median
37.72%
Q1
28.71%
Min
0.00%

JPM’s Dividend Payout Ratio of 29.14% is within the typical range for the Banks industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HSBC vs. JPM: A comparison of their Dividend Payout Ratio (TTM) against the Banks industry benchmark.

Dividend at a Glance

SymbolHSBCJPM
Dividend Yield (TTM)4.37%2.06%
Dividend Payout Ratio (TTM)139.32%29.14%

Valuation

Price-to-Earnings Ratio (TTM)

HSBC

13.83

Banks Industry
Max
20.41
Q3
14.62
Median
12.08
Q1
10.66
Min
6.33

HSBC’s P/E Ratio of 13.83 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.

JPM

13.68

Banks Industry
Max
20.41
Q3
14.62
Median
12.08
Q1
10.66
Min
6.33

JPM’s P/E Ratio of 13.68 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.

HSBC vs. JPM: A comparison of their Price-to-Earnings Ratio (TTM) against the Banks industry benchmark.

Price-to-Sales Ratio (TTM)

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.

JPM

2.90

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.

HSBC vs. JPM: A comparison of their Price-to-Sales Ratio (TTM) against the Banks industry benchmark.

Price-to-Book Ratio (MRQ)

HSBC

1.45

Banks Industry
Max
1.92
Q3
1.42
Median
1.16
Q1
1.01
Min
0.57

HSBC’s P/B Ratio of 1.45 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.

JPM

2.17

Banks Industry
Max
1.92
Q3
1.42
Median
1.16
Q1
1.01
Min
0.57

At 2.17, JPM’s P/B Ratio is at an extreme premium to the Banks 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 vs. JPM: A comparison of their Price-to-Book Ratio (MRQ) against the Banks industry benchmark.

Valuation at a Glance

SymbolHSBCJPM
Price-to-Earnings Ratio (TTM)13.8313.68
Price-to-Sales Ratio (TTM)1.742.90
Price-to-Book Ratio (MRQ)1.452.17
Price-to-Free Cash Flow Ratio (TTM)12.295.40