HSBC vs. LYG: HSBC vs. Lloyds Banking Stock Comparison

Company Profile

HSBC (HSBC) and Lloyds Banking (LYG) 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 Lloyds Banking (LYG) 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 HSBC (HSBC) at 14.22% and Lloyds Banking (LYG) at 13.69% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

HSBC (HSBC) at 41.16% retains a top-quartile share of revenue as profit, ahead of Lloyds Banking (LYG) at 30.61%, which keeps about the industry-typical share.

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

Profitability Metrics

Growth

Lloyds Banking (LYG) at 7.66% is around its peer norm for revenue growth, while HSBC (HSBC) at 5.38% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Lloyds Banking (LYG) at 11.29% 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 Lloyds Banking (LYG) 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 Lloyds Banking (LYG) 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

Both HSBC (HSBC) at 0.86% and Lloyds Banking (LYG) at 0.77% offer bottom-quartile dividend income relative to share price versus industry peers.

Both HSBC (HSBC) at 53.57% and Lloyds Banking (LYG) at 41.85% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

Dividend Metrics

Valuation

Lloyds Banking (LYG) at 9.79 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 LYG, though growth and earnings durability still matter.

P/S ratio is set aside for both HSBC (HSBC) in Banks and Lloyds Banking (LYG) 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.

Lloyds Banking (LYG) at 1.19 sits near its industry’s typical P/B ratio, while HSBC (HSBC) at 6.87 prices above its benchmark range — HSBC looks rich relative to book.

Valuation Metrics