HSBC vs. NFLX: A Head-to-Head Stock Comparison
Updated onHere’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.
Symbol | HSBC | NFLX |
---|---|---|
Company Name | HSBC Holdings plc | Netflix, Inc. |
Country | United Kingdom | United States |
GICS Sector | Financials | Communication Services |
GICS Industry | Banks | Entertainment |
Market Capitalization | 226.88 billion USD | 515.80 billion USD |
Exchange | NYSE | NasdaqGS |
Listing Date | July 16, 1999 | May 23, 2002 |
Security Type | ADR | Common 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.
Historical Performance at a Glance
Symbol | HSBC | NFLX |
---|---|---|
5-Day Price Return | -1.12% | -1.36% |
13-Week Price Return | 6.24% | 1.86% |
26-Week Price Return | 7.85% | 16.30% |
52-Week Price Return | 44.56% | 76.30% |
Month-to-Date Return | 2.37% | 4.70% |
Year-to-Date Return | 20.30% | 36.19% |
10-Day Avg. Volume | 13.79M | 2.89M |
3-Month Avg. Volume | 18.07M | 3.74M |
3-Month Volatility | 16.86% | 24.97% |
Beta | 0.07 | 1.61 |
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.
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.
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.
Profitability at a Glance
Symbol | HSBC | NFLX |
---|---|---|
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.
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.
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.
Financial Strength at a Glance
Symbol | HSBC | NFLX |
---|---|---|
Current Ratio (MRQ) | -- | 1.34 |
Quick Ratio (MRQ) | -- | 1.34 |
Debt-to-Equity Ratio (MRQ) | 1.91 | 0.58 |
Interest Coverage Ratio (TTM) | -- | 23.05 |
Growth
Revenue Growth
EPS Growth
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.
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.
Dividend at a Glance
Symbol | HSBC | NFLX |
---|---|---|
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.
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.
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.
Valuation at a Glance
Symbol | HSBC | NFLX |
---|---|---|
Price-to-Earnings Ratio (TTM) | 8.44 | 49.96 |
Price-to-Sales Ratio (TTM) | 1.74 | 12.28 |
Price-to-Book Ratio (MRQ) | 1.08 | 22.84 |
Price-to-Free Cash Flow Ratio (TTM) | 4.65 | 60.23 |