HSBC vs. NU: HSBC vs. Nu Holdings Stock Comparison

Company Profile

HSBC (HSBC) and Nu Holdings (NU) are both classified in the Diversified Banks sub-industry within the broader Banks industry, placing them in the closest GICS peer bucket.

HSBC (HSBC) has more than two decades of public-market history since July 16, 1999, whereas Nu Holdings (NU) listed on December 9, 2021 and has a much shorter record to draw on.

Nu Holdings (NU) trades as ordinary local shares, while HSBC (HSBC) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

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 companies show strong equity returns, but Nu Holdings (NU) at 31.63% is the standout with ROE above its industry range; HSBC (HSBC) at 14.22% also sits in the top quartile.

For every dollar of sales, both HSBC (HSBC) at 41.16% and Nu Holdings (NU) at 42.73% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

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

Profitability Metrics

Growth

Nu Holdings (NU) at 28.51% sits in the top revenue growth quartile, while HSBC (HSBC) at 5.38% is in the bottom quartile, showing a clear gap in revenue momentum.

Nu Holdings (NU) at 44.92% sits in the top EPS growth quartile, while HSBC (HSBC) at -3.23% is in the bottom quartile, showing a clear gap in earnings momentum.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: HSBC (HSBC) in Banks and Nu Holdings (NU) 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 Nu Holdings (NU) 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

Nu Holdings (NU) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile HSBC (HSBC) reports a yield of 0.86%, ranking against industry peers normally.

Nu Holdings (NU) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile HSBC (HSBC) reports a payout of 53.57%, ranking against industry peers normally.

Dividend Metrics

Valuation

HSBC (HSBC) at 11.38 is near its industry’s usual P/E ratio, while Nu Holdings (NU) at 16.48 sits in the richer quartile — NU needs stronger growth or earnings quality to justify the premium.

P/S ratio is set aside for both HSBC (HSBC) in Banks and Nu Holdings (NU) 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.

Measured against book value, both HSBC (HSBC) at 6.87 and Nu Holdings (NU) at 4.39 look expensive — each P/B ratio sits above its industry’s benchmark range.

Valuation Metrics