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

Updated on October 4, 2025

Here’s a clear look at HSBC and PM, 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, PM is a standard domestic listing.

Symbol	HSBC	PM
Company Name	HSBC Holdings plc	Philip Morris International Inc.
Country	United Kingdom	United States
GICS Sector	Financials	Consumer Staples
GICS Industry	Banks	Tobacco
Market Capitalization	246.16 billion USD	256.67 billion USD
Exchange	NYSE	NYSE
Listing Date	July 16, 1999	March 17, 2008
Security Type	ADR	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	HSBC	PM
5-Day Price Return	0.75%	-1.91%
13-Week Price Return	20.03%	-9.39%
26-Week Price Return	16.67%	3.77%
52-Week Price Return	54.59%	32.50%
Month-to-Date Return	10.38%	-0.83%
Year-to-Date Return	33.07%	33.66%
10-Day Avg. Volume	19.68M	6.38M
3-Month Avg. Volume	14.39M	5.67M
3-Month Volatility	15.95%	27.04%
Beta	1.57	0.47

Profitability

Return on Equity (TTM)

HSBC

13.86%

Banks Industry

Max: 25.40%
Q3: 15.55%
Median: 12.00%
Q1: 8.98%
Min: -0.10%

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.

PM

575.44%

Tobacco Industry

Max: 49.48%
Q3: 49.48%
Median: 13.16%
Q1: 5.02%
Min: 4.04%

PM’s Return on Equity of 575.44% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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

Net Profit Margin (TTM)

HSBC

34.16%

Banks Industry

Max: 54.20%
Q3: 35.73%
Median: 28.97%
Q1: 22.56%
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.

PM

21.08%

Tobacco Industry

Max: 21.36%
Q3: 16.88%
Median: 10.39%
Q1: 7.51%
Min: 4.74%

A Net Profit Margin of 21.08% places PM in the upper quartile for the Tobacco industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

HSBC

40.44%

Banks Industry

Max: 63.35%
Q3: 44.73%
Median: 37.24%
Q1: 28.25%
Min: 12.28%

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.

PM

36.28%

Tobacco Industry

Max: 18.53%
Q3: 15.03%
Median: 11.76%
Q1: 11.00%
Min: 6.94%

PM’s Operating Profit Margin of 36.28% is exceptionally high, placing it well above the typical range for the Tobacco industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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

Profitability at a Glance

Symbol	HSBC	PM
Return on Equity (TTM)	13.86%	575.44%
Return on Assets (TTM)	0.85%	12.56%
Net Profit Margin (TTM)	34.16%	21.08%
Operating Profit Margin (TTM)	40.44%	36.28%
Gross Profit Margin (TTM)	--	66.46%

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.

PM

0.83

Tobacco Industry

Max: 3.37
Q3: 1.84
Median: 1.26
Q1: 0.79
Min: 0.39

PM’s Current Ratio of 0.83 aligns with the median group of the Tobacco industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

HSBC

1.91

Banks Industry

Max: 5.78
Q3: 2.66
Median: 1.05
Q1: 0.40
Min: 0.00

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

PM

186.08

Tobacco Industry

Max: 2.19
Q3: 2.19
Median: 0.58
Q1: 0.07
Min: 0.01

With a Debt-to-Equity Ratio of 186.08, PM operates with exceptionally high leverage compared to the Tobacco industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

HSBC vs. PM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Banks and Tobacco 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.

PM

11.67

Tobacco Industry

Max: 306.04
Q3: 126.21
Median: 9.35
Q1: 6.32
Min: -11.45

PM’s Interest Coverage Ratio of 11.67 is positioned comfortably within the norm for the Tobacco industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

Symbol	HSBC	PM
Current Ratio (MRQ)	--	0.83
Quick Ratio (MRQ)	--	0.83
Debt-to-Equity Ratio (MRQ)	1.91	186.08
Interest Coverage Ratio (TTM)	--	11.67

Growth

Revenue Growth

HSBC vs. PM: 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. PM: 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

5.60%

Banks Industry

Max: 11.03%
Q3: 6.00%
Median: 3.87%
Q1: 2.41%
Min: 0.00%

HSBC’s Dividend Yield of 5.60% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

PM

3.33%

Tobacco Industry

Max: 6.77%
Q3: 6.12%
Median: 5.06%
Q1: 3.83%
Min: 0.57%

PM’s Dividend Yield of 3.33% is in the lower quartile for the Tobacco industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

HSBC vs. PM: A comparison of their Dividend Yield (TTM) against their respective Banks and Tobacco industry benchmarks.

Dividend Payout Ratio (TTM)

HSBC

71.79%

Banks Industry

Max: 134.24%
Q3: 79.39%
Median: 55.09%
Q1: 36.09%
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.

PM

70.92%

Tobacco Industry

Max: 78.29%
Q3: 75.97%
Median: 64.37%
Q1: 50.14%
Min: 49.96%

PM’s Dividend Payout Ratio of 70.92% is within the typical range for the Tobacco industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HSBC vs. PM: A comparison of their Dividend Payout Ratio (TTM) against their respective Banks and Tobacco industry benchmarks.

Dividend at a Glance

Symbol	HSBC	PM
Dividend Yield (TTM)	5.60%	3.33%
Dividend Payout Ratio (TTM)	71.79%	70.92%

Valuation

Price-to-Earnings Ratio (TTM)

HSBC

9.25

Banks Industry

Max: 22.69
Q3: 13.75
Median: 10.32
Q1: 7.73
Min: 2.59

HSBC’s P/E Ratio of 9.25 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.

PM

30.47

Tobacco Industry

Max: 44.17
Q3: 36.23
Median: 27.79
Q1: 11.97
Min: 9.91

PM’s P/E Ratio of 30.47 is within the middle range for the Tobacco industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

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

Price-to-Sales Ratio (TTM)

HSBC

1.74

Banks Industry

Max: 4.90
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.

PM

6.42

Tobacco Industry

Max: 7.60
Q3: 5.15
Median: 2.97
Q1: 1.39
Min: 0.80

PM’s P/S Ratio of 6.42 is in the upper echelon for the Tobacco 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. PM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Banks and Tobacco industry benchmarks.

Price-to-Book Ratio (MRQ)

HSBC

1.08

Banks Industry

Max: 2.09
Q3: 1.40
Median: 1.11
Q1: 0.86
Min: 0.29

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.

PM

1,368.86

Tobacco Industry

Max: 4.76
Q3: 4.76
Median: 3.34
Q1: 1.97
Min: 1.05

At 1,368.86, PM’s P/B Ratio is at an extreme premium to the Tobacco 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. PM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Banks and Tobacco industry benchmarks.

Valuation at a Glance

Symbol	HSBC	PM
Price-to-Earnings Ratio (TTM)	9.25	30.47
Price-to-Sales Ratio (TTM)	1.74	6.42
Price-to-Book Ratio (MRQ)	1.08	1,368.86
Price-to-Free Cash Flow Ratio (TTM)	5.10	25.75