Comprehensive Stock Comparison
Compare Bank of America Corporation (BAC) vs HSBC Holdings plc (HSBC) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | HSBC | 10.6% revenue growth vs BAC's -1.9% |
| Value | HSBC | PEG 0.35 vs 0.75 |
| Quality / Margins | HSBC | 16.7% net margin vs BAC's 16.2% |
| Stability / Safety | HSBC | Beta 0.83 vs BAC's 0.99 |
| Dividends | HSBC | 5.0% yield, 4-year raise streak, vs BAC's 2.5% |
| Momentum (1Y) | HSBC | +61.0% vs BAC's +10.4% |
| Efficiency (ROA) | BAC | 0.9% ROA vs HSBC's 0.5%, ROIC 3.2% vs 4.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Bank of America is one of the world's largest financial institutions providing comprehensive banking and financial services to consumers, businesses, and institutions. It generates revenue primarily through net interest income from its massive loan portfolio — about 60% of total revenue — supplemented by fees from investment banking, wealth management, and trading activities. The company's key advantage is its massive scale and nationwide branch network — the second-largest in the U.S. — which creates a stable deposit base and cross-selling opportunities across its diverse financial services ecosystem.
HSBC is a global banking and financial services institution operating across retail, commercial, and investment banking. It generates revenue primarily through net interest income from lending activities (about 60% of total income) and fee-based income from transaction services, wealth management, and investment banking. Its key competitive advantage is its unique global network—particularly its dominant position in Asia and strong connectivity between East and West—which enables cross-border banking services few competitors can match.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
HSBC leads in 3 of 6 categories (Financial Metrics, Total Returns). BAC leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
BAC and HSBC operate at a comparable scale, with $188.8B and $143.3B in trailing revenue. Profitability is closely matched — net margins range from 16.7% (HSBC) to 16.2% (BAC).
| Metric | BACBank of America C… | HSBCHSBC Holdings plc |
|---|---|---|
| RevenueTrailing 12 months | $188.8B | $143.3B |
| EBITDAEarnings before interest/tax | $36.6B | $28.6B |
| Net IncomeAfter-tax profit | $30.6B | $17.7B |
| Free Cash FlowCash after capex | $12.6B | $0 |
| Gross MarginGross profit ÷ Revenue | +55.4% | +47.0% |
| Operating MarginEBIT ÷ Revenue | +18.5% | +22.5% |
| Net MarginNet income ÷ Revenue | +16.2% | +16.7% |
| FCF MarginFCF ÷ Revenue | +6.7% | +42.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +18.3% | -17.6% |
Valuation Metrics
At 13.0x trailing earnings, BAC trades at a 13% valuation discount to HSBC's 15.0x P/E. Adjusting for growth (PEG ratio), HSBC offers better value at 0.46x vs BAC's 0.85x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | BACBank of America C… | HSBCHSBC Holdings plc |
|---|---|---|
| Market CapShares × price | $379.2B | $319.8B |
| Enterprise ValueMkt cap + debt − cash | $513.3B | $277.7B |
| Trailing P/EPrice ÷ TTM EPS | 13.04x | 15.03x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.52x | 11.63x |
| PEG RatioP/E ÷ EPS growth rate | 0.85x | 0.46x |
| EV / EBITDAEnterprise value multiple | 14.02x | 7.63x |
| Price / SalesMarket cap ÷ Revenue | 2.01x | 2.23x |
| Price / BookPrice ÷ Book value/share | 1.24x | 1.79x |
| Price / FCFMarket cap ÷ FCF | 30.07x | 5.21x |
Profitability & Efficiency
BAC delivers a 10.1% return on equity — every $100 of shareholder capital generates $10 in annual profit, vs $9 for HSBC. BAC carries lower financial leverage with a 1.21x debt-to-equity ratio, signaling a more conservative balance sheet compared to HSBC's 1.26x.
| Metric | BACBank of America C… | HSBCHSBC Holdings plc |
|---|---|---|
| ROE (TTM)Return on equity | +10.1% | +8.9% |
| ROA (TTM)Return on assets | +0.9% | +0.5% |
| ROICReturn on invested capital | +3.2% | +4.6% |
| ROCEReturn on capital employed | +4.2% | +2.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 1.21x | 1.26x |
| Net DebtTotal debt minus cash | $134.1B | -$42.2B |
| Cash & Equiv.Liquid assets | $231.8B | $284.5B |
| Total DebtShort + long-term debt | $365.9B | $242.3B |
| Interest CoverageEBIT ÷ Interest expense | 0.44x | 0.39x |
Total Returns (with DRIP)
A $10,000 investment in HSBC five years ago would be worth $35,948 today (with dividends reinvested), compared to $15,219 for BAC. Over the past 12 months, HSBC leads with a +61.0% total return vs BAC's +10.4%. The 3-year compound annual growth rate (CAGR) favors HSBC at 39.1% vs BAC's 15.5% — a key indicator of consistent wealth creation.
| Metric | BACBank of America C… | HSBCHSBC Holdings plc |
|---|---|---|
| YTD ReturnYear-to-date | -10.9% | +15.8% |
| 1-Year ReturnPast 12 months | +10.4% | +61.0% |
| 3-Year ReturnCumulative with dividends | +54.0% | +169.3% |
| 5-Year ReturnCumulative with dividends | +52.2% | +259.5% |
| 10-Year ReturnCumulative with dividends | +355.5% | +267.7% |
| CAGR (3Y)Annualised 3-year return | +15.5% | +39.1% |
Risk & Volatility
HSBC is the less volatile stock with a 0.83 beta — it tends to amplify market swings less than BAC's 0.99 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HSBC currently trades 98.3% from its 52-week high vs BAC's 86.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | BACBank of America C… | HSBCHSBC Holdings plc |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 0.83x |
| 52-Week HighHighest price in past year | $57.55 | $94.80 |
| 52-Week LowLowest price in past year | $33.07 | $45.66 |
| % of 52W HighCurrent price vs 52-week peak | +86.6% | +98.3% |
| RSI (14)Momentum oscillator 0–100 | 45.6 | 69.1 |
| Avg Volume (50D)Average daily shares traded | 30.7M | 1.8M |
Analyst Outlook
Wall Street rates BAC as "Buy" and HSBC as "Hold". Consensus price targets imply 21.1% upside for BAC (target: $60) vs -44.2% for HSBC (target: $52). For income investors, HSBC offers the higher dividend yield at 4.96% vs BAC's 2.54%.
| Metric | BACBank of America C… | HSBCHSBC Holdings plc |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $60.33 | $52.00 |
| # AnalystsCovering analysts | 53 | 19 |
| Dividend YieldAnnual dividend ÷ price | +2.5% | +5.0% |
| Dividend StreakConsecutive years of raises | 6 | 4 |
| Dividend / ShareAnnual DPS | $1.27 | $4.63 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.7% | +3.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Bank of America Cor… (BAC) | 100 | 183.96 | +84.0% |
| HSBC Holdings plc (HSBC) | 100 | 265.32 | +165.3% |
HSBC Holdings plc (HSBC) returned +259% over 5 years vs Bank of America Cor… (BAC)'s +52%. A $10,000 investment in HSBC 5 years ago would be worth $35,948 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bank of America Cor… (BAC) | $93.7B | $188.8B | +101.5% |
| HSBC Holdings plc (HSBC) | $74.6B | $143.3B | +92.1% |
Bank of America Corporation's revenue grew from $93.7B (2016) to $188.8B (2025) — a 8.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bank of America Cor… (BAC) | 19.0% | 16.2% | -14.7% |
| HSBC Holdings plc (HSBC) | 3.3% | 16.7% | +403.4% |
Bank of America Corporation's net margin went from 19% (2016) to 16% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Bank of America Cor… (BAC) | 18.9 | 14.4 | -23.8% |
| HSBC Holdings plc (HSBC) | 21.5 | 8 | -62.8% |
Bank of America Corporation has traded in a 9x–19x P/E range over 9 years; current trailing P/E is ~13x. HSBC Holdings plc has traded in a 7x–27x P/E range over 8 years; current trailing P/E is ~15x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bank of America Cor… (BAC) | 1.5 | 3.82 | +154.7% |
| HSBC Holdings plc (HSBC) | 0.35 | 6.2 | +1671.4% |
Bank of America Corporation's EPS grew from $1.50 (2016) to $3.82 (2025) — a 11% CAGR.
Chart 6Free Cash Flow — 5 Years
Bank of America Corporation generated $13B FCF in 2025 (+275% vs 2021). HSBC Holdings plc generated $61B FCF in 2024 (-39% vs 2021).
BAC vs HSBC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BAC or HSBC a better buy right now?
Bank of America Corporation (BAC) offers the better valuation at 13.0x trailing P/E (11.5x forward), making it the more compelling value choice. Analysts rate Bank of America Corporation (BAC) a "Buy" — based on 53 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — BAC or HSBC?
On trailing P/E, Bank of America Corporation (BAC) is the cheapest at 13.0x versus HSBC Holdings plc at 15.0x. On forward P/E, Bank of America Corporation is actually cheaper at 11.5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: HSBC Holdings plc wins at 0.35x versus Bank of America Corporation's 0.75x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — BAC or HSBC?
Over the past 5 years, HSBC Holdings plc (HSBC) delivered a total return of +259.5%, compared to +52.2% for Bank of America Corporation (BAC). A $10,000 investment in HSBC five years ago would be worth approximately $36K today (assuming dividends reinvested). Over 10 years, the gap is even starker: BAC returned +355.5% versus HSBC's +267.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — BAC or HSBC?
By beta (market sensitivity over 5 years), HSBC Holdings plc (HSBC) is the lower-risk stock at 0.83β versus Bank of America Corporation's 0.99β — meaning BAC is approximately 20% more volatile than HSBC relative to the S&P 500. On balance sheet safety, Bank of America Corporation (BAC) carries a lower debt/equity ratio of 121% versus 126% for HSBC Holdings plc — giving it more financial flexibility in a downturn.
05Which has better profit margins — BAC or HSBC?
HSBC Holdings plc (HSBC) is the more profitable company, earning 16.7% net margin versus 16.2% for Bank of America Corporation — meaning it keeps 16.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HSBC leads at 22.5% versus 18.5% for BAC. At the gross margin level — before operating expenses — BAC leads at 55.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is BAC or HSBC more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, HSBC Holdings plc (HSBC) is the more undervalued stock at a PEG of 0.35x versus Bank of America Corporation's 0.75x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Bank of America Corporation (BAC) trades at 11.5x forward P/E versus 11.6x for HSBC Holdings plc — 0.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BAC: 21.1% to $60.33.
07Which pays a better dividend — BAC or HSBC?
All stocks in this comparison pay dividends. HSBC Holdings plc (HSBC) offers the highest yield at 5.0%, versus 2.5% for Bank of America Corporation (BAC).
08Is BAC or HSBC better for a retirement portfolio?
For long-horizon retirement investors, HSBC Holdings plc (HSBC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.83), 5.0% yield, +267.7% 10Y return). Both have compounded well over 10 years (HSBC: +267.7%, BAC: +355.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between BAC and HSBC?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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