HSBC vs. RY: HSBC vs. Royal Bank of Canada Stock Comparison
How do HSBC (HSBC) and Royal Bank of Canada (RY) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
HSBC (HSBC) and Royal Bank of Canada (RY) are both classified in the Diversified Banks sub-industry within the broader Banks industry, placing them in the closest GICS peer bucket.
Royal Bank of Canada (RY) 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.
| Profile Item | HSBC | RY |
|---|---|---|
| Name | HSBC Holdings plc Sponsored ADR | Royal Bank of Canada |
| Country/Region | United Kingdom | Canada |
| GICS Sector | Financials | Financials |
| GICS Industry Group | Banks | Banks |
| GICS Industry | Banks | Banks |
| GICS Sub-Industry | Diversified Banks | Diversified Banks |
| Market Capitalization | 326.12 billion USD | 287.62 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | July 16, 1999 | October 16, 1995 |
| Security Type | ADR | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Performance Metrics
| Metric | HSBC | RY |
|---|---|---|
| Total Return (1Y) | 64.10% | 59.76% |
Risk Profile
Drawdown History
Risk Metrics
| Metric | HSBC | RY |
|---|---|---|
| Volatility (1Y, Annualized) | 27.03% | 15.03% |
| Beta (5Y) | 0.58 | 0.80 |
| Avg. Volume (3M) | 1.75M | 1.61M |
Risk-Adjusted Performance
Risk-Return Positioning
Profitability
ROE (TTM)
Royal Bank of Canada (RY) at 16.20% sits in the top ROE quartile, while HSBC (HSBC) at 11.61% is closer to the peer norm — stronger capital efficiency for RY.
HSBC
Banks industry group
11.61%
- Max
- 19.15%
- Q3
- 13.03%
- HSBC
- 11.61%
- Median
- 10.82%
- Q1
- 8.56%
- Min
- 3.15%
RY
Banks industry group
16.20%
- Max
- 19.15%
- RY
- 16.20%
- Q3
- 13.03%
- Median
- 10.82%
- Q1
- 8.56%
- Min
- 3.15%
Net Margin (TTM)
HSBC (HSBC) at 34.98% retains a top-quartile share of revenue as profit, ahead of Royal Bank of Canada (RY) at 33.69%, which keeps about the industry-typical share.
HSBC
Banks industry group
34.98%
- Max
- 47.55%
- HSBC
- 34.98%
- Q3
- 34.56%
- Median
- 30.17%
- Q1
- 25.36%
- Min
- 12.11%
RY
Banks industry group
33.69%
- Max
- 47.55%
- Q3
- 34.56%
- RY
- 33.69%
- Median
- 30.17%
- Q1
- 25.36%
- Min
- 12.11%
Operating Margin (TTM)
Neither side reports a meaningful operating margin: for HSBC (HSBC) in Banks and Royal Bank of Canada (RY) in Banks, funding costs are part of the core business, so net margin and ROE are the cleaner profitability reads.
Profitability Metrics
| Metric | HSBC | RY |
|---|---|---|
| ROE (TTM) | 11.61% | 16.20% |
| ROA (TTM) | 0.72% | 0.96% |
| Net Margin (TTM) | 34.98% | 33.69% |
| Operating Margin (TTM) | -- | -- |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Revenue Growth Metrics
| Metric | HSBC | RY |
|---|---|---|
| Revenue Growth (YoY) | 5.38% | 15.73% |
| Revenue Growth (3Y CAGR) | 9.75% | 10.90% |
EPS Growth
EPS Growth Metrics
| Metric | HSBC | RY |
|---|---|---|
| EPS Growth (YoY) | -3.23% | -- |
| EPS Growth (3Y CAGR) | 17.49% | -- |
Financial Strength
Current Ratio (MRQ)
current ratio doesn’t apply on either side: HSBC (HSBC) in Banks and Royal Bank of Canada (RY) 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 / Equity (MRQ)
debt-to-equity ratio is set aside for both: HSBC (HSBC) in Banks and Royal Bank of Canada (RY) 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
| Metric | HSBC | RY |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Royal Bank of Canada (RY) at 3.11% pays a yield in its industry’s typical range, while HSBC (HSBC) at 0.79% falls in the bottom quartile of its peers.
HSBC
Banks industry group
0.79%
- Max
- 5.31%
- Q3
- 3.21%
- Median
- 2.34%
- Q1
- 1.29%
- HSBC
- 0.79%
- Min
- 0.00%
RY
Banks industry group
3.11%
- Max
- 5.31%
- Q3
- 3.21%
- RY
- 3.11%
- Median
- 2.34%
- Q1
- 1.29%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Royal Bank of Canada (RY) at 41.35% pays out a band-typical share of earnings, while HSBC (HSBC) at 61.98% distributes more than its industry norm — less retained, thinner cover.
HSBC
Banks industry group
61.98%
- Max
- 74.88%
- HSBC
- 61.98%
- Q3
- 42.43%
- Median
- 28.93%
- Q1
- 19.66%
- Min
- 0.00%
RY
Banks industry group
41.35%
- Max
- 74.88%
- Q3
- 42.43%
- RY
- 41.35%
- Median
- 28.93%
- Q1
- 19.66%
- Min
- 0.00%
Dividend Metrics
| Metric | HSBC | RY |
|---|---|---|
| Dividend Yield (TTM) | 0.79% | 3.11% |
| Dividend Payout Ratio (TTM) | 61.98% | 41.35% |
Valuation
P/E Ratio (TTM)
Both HSBC (HSBC) at 15.72 and Royal Bank of Canada (RY) at 19.11 sit in the richer earnings-multiple quartile for P/E ratio, so investors are paying more for TTM earnings than they pay for typical peers.
HSBC
Banks industry group
15.72
- Max
- 20.85
- HSBC
- 15.72
- Q3
- 15.72
- Median
- 13.20
- Q1
- 11.71
- Min
- 6.98
RY
Banks industry group
19.11
- Max
- 20.85
- RY
- 19.11
- Q3
- 15.72
- Median
- 13.20
- Q1
- 11.71
- Min
- 6.98
P/S Ratio (TTM)
P/S ratio is set aside for both HSBC (HSBC) in Banks and Royal Bank of Canada (RY) 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.
P/B Ratio (MRQ)
Measured against book value, both HSBC (HSBC) at 7.48 and Royal Bank of Canada (RY) at 3.10 look expensive — each P/B ratio sits above its industry’s benchmark range.
HSBC
Banks industry group
7.48
- HSBC
- 7.48
- Max
- 2.27
- Q3
- 1.61
- Median
- 1.34
- Q1
- 1.15
- Min
- 0.67
RY
Banks industry group
3.10
- RY
- 3.10
- Max
- 2.27
- Q3
- 1.61
- Median
- 1.34
- Q1
- 1.15
- Min
- 0.67
Valuation Metrics
| Metric | HSBC | RY |
|---|---|---|
| P/E Ratio (TTM) | 15.72 | 19.11 |
| P/S Ratio (TTM) | -- | -- |
| P/B Ratio (MRQ) | 7.48 | 3.10 |
| Free Cash Flow Yield (TTM) | -- | -- |