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

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

Company Profile

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

SymbolHSBCNFLX
Company NameHSBC Holdings plcNetflix, Inc.
CountryUnited KingdomUnited States
GICS SectorFinancialsCommunication Services
GICS IndustryBanksEntertainment
Market Capitalization226.88 billion USD515.80 billion USD
ExchangeNYSENasdaqGS
Listing DateJuly 16, 1999May 23, 2002
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of HSBC and NFLX 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 vs. NFLX: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHSBCNFLX
5-Day Price Return-1.12%-1.36%
13-Week Price Return6.24%1.86%
26-Week Price Return7.85%16.30%
52-Week Price Return44.56%76.30%
Month-to-Date Return2.37%4.70%
Year-to-Date Return20.30%36.19%
10-Day Avg. Volume13.79M2.89M
3-Month Avg. Volume18.07M3.74M
3-Month Volatility16.86%24.97%
Beta0.071.61

Profitability

Return on Equity (TTM)

HSBC

13.86%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

HSBC’s Return on Equity of 13.86% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

NFLX

42.50%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

In the upper quartile for the Entertainment industry, NFLX’s Return on Equity of 42.50% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

HSBC vs. NFLX: A comparison of their Return on Equity (TTM) against their respective Banks and Entertainment industry benchmarks.

Net Profit Margin (TTM)

HSBC

34.16%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

HSBC’s Net Profit Margin of 34.16% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

NFLX

24.58%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

A Net Profit Margin of 24.58% places NFLX in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

HSBC vs. NFLX: A comparison of their Net Profit Margin (TTM) against their respective Banks and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

HSBC

40.44%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

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.

NFLX

29.51%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

An Operating Profit Margin of 29.51% places NFLX in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

HSBC vs. NFLX: A comparison of their Operating Profit Margin (TTM) against their respective Banks and Entertainment industry benchmarks.

Profitability at a Glance

SymbolHSBCNFLX
Return on Equity (TTM)13.86%42.50%
Return on Assets (TTM)0.85%19.42%
Net Profit Margin (TTM)34.16%24.58%
Operating Profit Margin (TTM)40.44%29.51%
Gross Profit Margin (TTM)--48.49%

Financial Strength

Current Ratio (MRQ)

HSBC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

NFLX

1.34

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

NFLX’s Current Ratio of 1.34 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

HSBC vs. NFLX: A comparison of their Current Ratio (MRQ) against their respective Banks and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

HSBC

1.91

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

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

NFLX

0.58

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
Min
0.00

NFLX’s Debt-to-Equity Ratio of 0.58 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

HSBC vs. NFLX: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Banks and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

HSBC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

NFLX

23.05

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

NFLX’s Interest Coverage Ratio of 23.05 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.

HSBC vs. NFLX: A comparison of their Interest Coverage Ratio (TTM) against their respective Banks and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolHSBCNFLX
Current Ratio (MRQ)--1.34
Quick Ratio (MRQ)--1.34
Debt-to-Equity Ratio (MRQ)1.910.58
Interest Coverage Ratio (TTM)--23.05

Growth

Revenue Growth

HSBC vs. NFLX: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

HSBC vs. NFLX: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

HSBC

6.14%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

With a Dividend Yield of 6.14%, HSBC offers a more attractive income stream than most of its peers in the Banks industry, signaling a strong commitment to shareholder returns.

NFLX

0.00%

Entertainment Industry

Max
2.54%
Q3
1.29%
Median
0.61%
Q1
0.00%
Min
0.00%

NFLX 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 vs. NFLX: A comparison of their Dividend Yield (TTM) against their respective Banks and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

HSBC

71.79%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

HSBC’s Dividend Payout Ratio of 71.79% is within the typical range for the Banks industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

NFLX

0.00%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
Q1
0.00%
Min
0.00%

NFLX 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 vs. NFLX: A comparison of their Dividend Payout Ratio (TTM) against their respective Banks and Entertainment industry benchmarks.

Dividend at a Glance

SymbolHSBCNFLX
Dividend Yield (TTM)6.14%0.00%
Dividend Payout Ratio (TTM)71.79%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

HSBC

8.44

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

HSBC’s P/E Ratio of 8.44 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.

NFLX

49.96

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

A P/E Ratio of 49.96 places NFLX in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

HSBC vs. NFLX: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Banks and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

HSBC

1.74

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

NFLX

12.28

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

NFLX’s P/S Ratio of 12.28 is in the upper echelon for the Entertainment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

HSBC vs. NFLX: A comparison of their Price-to-Sales Ratio (TTM) against their respective Banks and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

HSBC

1.08

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

HSBC’s P/B Ratio of 1.08 is within the conventional range for the Banks 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.

NFLX

22.84

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

At 22.84, NFLX’s P/B Ratio is at an extreme premium to the Entertainment 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. NFLX: A comparison of their Price-to-Book Ratio (MRQ) against their respective Banks and Entertainment industry benchmarks.

Valuation at a Glance

SymbolHSBCNFLX
Price-to-Earnings Ratio (TTM)8.4449.96
Price-to-Sales Ratio (TTM)1.7412.28
Price-to-Book Ratio (MRQ)1.0822.84
Price-to-Free Cash Flow Ratio (TTM)4.6560.23