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
| Symbol | HSBC | JPM |
|---|---|---|
| Company Name | HSBC Holdings plc | JPMorgan Chase & Co. |
| Country | United Kingdom | United States |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Banks | Banks |
| GICS Industry | Banks | Banks |
| GICS Sub-Industry | Diversified Banks | Diversified Banks |
| Market Capitalization | 310.55 billion USD | 803.85 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | July 16, 1999 | March 17, 1980 |
| Security Type | ADR | Common 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.
Historical Performance at a Glance
| Symbol | HSBC | JPM |
|---|---|---|
| 5-Day Price Return | 3.95% | -3.04% |
| 13-Week Price Return | 4.13% | -6.95% |
| 26-Week Price Return | 24.45% | -3.02% |
| 52-Week Price Return | 51.85% | 18.54% |
| Month-to-Date Return | -1.38% | -4.22% |
| Year-to-Date Return | 13.34% | -6.90% |
| 10-Day Avg. Volume | 15.30M | 8.01M |
| 3-Month Avg. Volume | 14.62M | 10.27M |
| 3-Month Volatility | 38.40% | 23.96% |
| Beta | 1.68 | 1.03 |
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.
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.
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.
Profitability at a Glance
| Symbol | HSBC | JPM |
|---|---|---|
| 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.
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.
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.
Financial Strength at a Glance
| Symbol | HSBC | JPM |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Quick Ratio (MRQ) | -- | -- |
| Debt-to-Equity Ratio (MRQ) | 1.62 | 3.39 |
| Interest Coverage Ratio (TTM) | -- | -- |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | HSBC | JPM |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 15.51% | 73.97% |
| Revenue Growth (TTM vs Prior YoY) | 109.08% | 108.98% |
| 3-Year Revenue CAGR | 0.22% | 3.36% |
| 5-Year Revenue CAGR | 6.08% | 7.73% |
EPS Growth
EPS Growth at a Glance
| Symbol | HSBC | JPM |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 2.77% | 16.95% |
| EPS Growth (TTM vs Prior YoY) | 12.26% | 2.39% |
| 3-Year EPS CAGR | 17.72% | 17.37% |
| 5-Year EPS CAGR | 37.51% | 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.
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.
Dividend at a Glance
| Symbol | HSBC | JPM |
|---|---|---|
| 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.
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.
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.
Valuation at a Glance
| Symbol | HSBC | JPM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 13.83 | 13.68 |
| Price-to-Sales Ratio (TTM) | 1.74 | 2.90 |
| Price-to-Book Ratio (MRQ) | 1.45 | 2.17 |
| Price-to-Free Cash Flow Ratio (TTM) | 12.29 | 5.40 |