Comprehensive Stock Comparison
Compare Banco Santander, S.A. (SAN) 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 SAN's 6.6% |
| Value | SAN | Lower P/E (8.7x vs 11.6x) |
| Quality / Margins | HSBC | 16.7% net margin vs SAN's 9.7% |
| Stability / Safety | HSBC | Beta 0.83 vs SAN's 1.05, lower leverage |
| Dividends | HSBC | 5.0% yield, 4-year raise streak, vs SAN's 1.8% |
| Momentum (1Y) | SAN | +97.2% vs HSBC's +61.0% |
| Efficiency (ROA) | SAN | 0.7% ROA vs HSBC's 0.5%, ROIC 2.8% 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
Banco Santander is a global retail and commercial bank providing banking services to individuals, small businesses, and corporations across Europe and the Americas. It generates revenue primarily through net interest income from lending activities—including mortgages, consumer loans, and corporate financing—supplemented by fees from transaction banking, wealth management, and insurance products. The bank's competitive advantage lies in its diversified geographic footprint across ten core markets—which provides natural hedging and cross-selling opportunities—and its scale as one of Europe's largest banks by market capitalization.
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.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
HSBC leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). SAN leads in 2 (Valuation Metrics, Total Returns).
Financial Metrics (TTM)
HSBC and SAN operate at a comparable scale, with $143.3B and $129.9B in trailing revenue. HSBC is the more profitable business, keeping 16.7% of every revenue dollar as net income compared to SAN's 9.7%.
| Metric | SANBanco Santander, … | HSBCHSBC Holdings plc |
|---|---|---|
| RevenueTrailing 12 months | $129.9B | $143.3B |
| EBITDAEarnings before interest/tax | $22.1B | $28.6B |
| Net IncomeAfter-tax profit | $13.6B | $17.7B |
| Free Cash FlowCash after capex | $8.4B | $0 |
| Gross MarginGross profit ÷ Revenue | +39.4% | +47.0% |
| Operating MarginEBIT ÷ Revenue | +14.6% | +22.5% |
| Net MarginNet income ÷ Revenue | +9.7% | +16.7% |
| FCF MarginFCF ÷ Revenue | -25.1% | +42.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +10.0% | -17.6% |
Valuation Metrics
At 13.6x trailing earnings, SAN trades at a 9% valuation discount to HSBC's 15.0x P/E. Adjusting for growth (PEG ratio), HSBC offers better value at 0.46x vs SAN's 0.80x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SANBanco Santander, … | HSBCHSBC Holdings plc |
|---|---|---|
| Market CapShares × price | $181.4B | $319.8B |
| Enterprise ValueMkt cap + debt − cash | $494.6B | $277.7B |
| Trailing P/EPrice ÷ TTM EPS | 13.61x | 15.03x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.74x | 11.63x |
| PEG RatioP/E ÷ EPS growth rate | 0.80x | 0.46x |
| EV / EBITDAEnterprise value multiple | 18.78x | 7.63x |
| Price / SalesMarket cap ÷ Revenue | 1.18x | 2.23x |
| Price / BookPrice ÷ Book value/share | 1.52x | 1.79x |
| Price / FCFMarket cap ÷ FCF | — | 5.21x |
Profitability & Efficiency
SAN delivers a 12.4% return on equity — every $100 of shareholder capital generates $12 in annual profit, vs $9 for HSBC. HSBC carries lower financial leverage with a 1.26x debt-to-equity ratio, signaling a more conservative balance sheet compared to SAN's 4.50x. On the Piotroski fundamental quality scale (0–9), HSBC scores 7/9 vs SAN's 6/9, reflecting strong financial health.
| Metric | SANBanco Santander, … | HSBCHSBC Holdings plc |
|---|---|---|
| ROE (TTM)Return on equity | +12.4% | +8.9% |
| ROA (TTM)Return on assets | +0.7% | +0.5% |
| ROICReturn on invested capital | +2.8% | +4.6% |
| ROCEReturn on capital employed | +1.1% | +2.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 4.50x | 1.26x |
| Net DebtTotal debt minus cash | $265.5B | -$42.2B |
| Cash & Equiv.Liquid assets | $217.9B | $284.5B |
| Total DebtShort + long-term debt | $483.4B | $242.3B |
| Interest CoverageEBIT ÷ Interest expense | 1.21x | 0.39x |
Total Returns (with DRIP)
A $10,000 investment in SAN five years ago would be worth $37,214 today (with dividends reinvested), compared to $35,948 for HSBC. Over the past 12 months, SAN leads with a +97.2% total return vs HSBC's +61.0%. The 3-year compound annual growth rate (CAGR) favors SAN at 49.0% vs HSBC's 39.1% — a key indicator of consistent wealth creation.
| Metric | SANBanco Santander, … | HSBCHSBC Holdings plc |
|---|---|---|
| YTD ReturnYear-to-date | +2.4% | +15.8% |
| 1-Year ReturnPast 12 months | +97.2% | +61.0% |
| 3-Year ReturnCumulative with dividends | +230.9% | +169.3% |
| 5-Year ReturnCumulative with dividends | +272.1% | +259.5% |
| 10-Year ReturnCumulative with dividends | +272.8% | +267.7% |
| CAGR (3Y)Annualised 3-year return | +49.0% | +39.1% |
Risk & Volatility
HSBC is the less volatile stock with a 0.83 beta — it tends to amplify market swings less than SAN's 1.05 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 SAN's 93.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SANBanco Santander, … | HSBCHSBC Holdings plc |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.05x | 0.83x |
| 52-Week HighHighest price in past year | $13.24 | $94.80 |
| 52-Week LowLowest price in past year | $5.54 | $45.66 |
| % of 52W HighCurrent price vs 52-week peak | +93.4% | +98.3% |
| RSI (14)Momentum oscillator 0–100 | 56.7 | 69.1 |
| Avg Volume (50D)Average daily shares traded | 7.9M | 1.8M |
Analyst Outlook
Wall Street rates SAN as "Buy" and HSBC as "Hold". Consensus price targets imply -44.2% upside for HSBC (target: $52) vs -75.7% for SAN (target: $3). For income investors, HSBC offers the higher dividend yield at 4.96% vs SAN's 1.85%.
| Metric | SANBanco Santander, … | HSBCHSBC Holdings plc |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $3.00 | $52.00 |
| # AnalystsCovering analysts | 23 | 19 |
| Dividend YieldAnnual dividend ÷ price | +1.8% | +5.0% |
| Dividend StreakConsecutive years of raises | 3 | 4 |
| Dividend / ShareAnnual DPS | $0.19 | $4.63 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.1% | +3.7% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | 100 | 372.08 | +272.1% |
| HSBC Holdings plc (HSBC) | 100 | 265.32 | +165.3% |
Banco Santander, S.… (SAN) returned +272% over 5 years vs HSBC Holdings plc (HSBC)'s +259%. A $10,000 investment in SAN 5 years ago would be worth $37,214 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | $71.7B | $129.9B | +81.2% |
| HSBC Holdings plc (HSBC) | $87.2B | $143.3B | +64.4% |
Banco Santander, S.A.'s revenue grew from $71.7B (2015) to $129.9B (2024) — a 6.8% CAGR. HSBC Holdings plc's revenue grew from $87.2B (2015) to $143.3B (2024) — a 5.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | 8.3% | 9.7% | +16.3% |
| HSBC Holdings plc (HSBC) | 15.5% | 16.7% | +7.9% |
Banco Santander, S.A.'s net margin went from 8% (2015) to 10% (2024). HSBC Holdings plc's net margin went from 16% (2015) to 17% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | 16.1 | 5.9 | -63.4% |
| HSBC Holdings plc (HSBC) | 21.5 | 8 | -62.8% |
Banco Santander, S.A. has traded in a 6x–16x P/E range over 7 years; current trailing P/E is ~14x. 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 | 2015 | 2024 | Change |
|---|---|---|---|
| Banco Santander, S.… (SAN) | 0.38 | 0.77 | +102.6% |
| HSBC Holdings plc (HSBC) | 3.2 | 6.2 | +93.8% |
Banco Santander, S.A.'s EPS grew from $0.38 (2015) to $0.77 (2024) — a 8% CAGR. HSBC Holdings plc's EPS grew from $3.20 (2015) to $6.20 (2024) — a 8% CAGR.
Chart 6Free Cash Flow — 5 Years
Banco Santander, S.A. generated $-33B FCF in 2024 (-172% vs 2021). HSBC Holdings plc generated $61B FCF in 2024 (-39% vs 2021).
SAN vs HSBC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SAN or HSBC a better buy right now?
Banco Santander, S.A. (SAN) offers the better valuation at 13.6x trailing P/E (8.7x forward), making it the more compelling value choice. Analysts rate Banco Santander, S.A. (SAN) a "Buy" — based on 23 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 — SAN or HSBC?
On trailing P/E, Banco Santander, S.A. (SAN) is the cheapest at 13.6x versus HSBC Holdings plc at 15.0x. On forward P/E, Banco Santander, S.A. is actually cheaper at 8.7x. 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 Banco Santander, S.A.'s 0.51x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — SAN or HSBC?
Over the past 5 years, Banco Santander, S.A. (SAN) delivered a total return of +272.1%, compared to +259.5% for HSBC Holdings plc (HSBC). A $10,000 investment in SAN five years ago would be worth approximately $37K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SAN returned +272.8% 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 — SAN or HSBC?
By beta (market sensitivity over 5 years), HSBC Holdings plc (HSBC) is the lower-risk stock at 0.83β versus Banco Santander, S.A.'s 1.05β — meaning SAN is approximately 27% more volatile than HSBC relative to the S&P 500. On balance sheet safety, HSBC Holdings plc (HSBC) carries a lower debt/equity ratio of 126% versus 5% for Banco Santander, S.A. — giving it more financial flexibility in a downturn.
05Which has better profit margins — SAN or HSBC?
HSBC Holdings plc (HSBC) is the more profitable company, earning 16.7% net margin versus 9.7% for Banco Santander, S.A. — 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 14.6% for SAN. At the gross margin level — before operating expenses — HSBC leads at 47.0%, 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 SAN 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 Banco Santander, S.A.'s 0.51x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Banco Santander, S.A. (SAN) trades at 8.7x forward P/E versus 11.6x for HSBC Holdings plc — 2.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HSBC: -44.2% to $52.00.
07Which pays a better dividend — SAN or HSBC?
All stocks in this comparison pay dividends. HSBC Holdings plc (HSBC) offers the highest yield at 5.0%, versus 1.8% for Banco Santander, S.A. (SAN).
08Is SAN 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%, SAN: +272.8%), 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 SAN 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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