Comprehensive Stock Comparison
Compare Bank of Montreal (BMO) 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 BMO's -0.5% |
| Value | HSBC | PEG 0.35 vs 1.17 |
| Quality / Margins | HSBC | 16.7% net margin vs BMO's 11.1% |
| Stability / Safety | BMO | Beta 0.66 vs HSBC's 0.83 |
| Dividends | HSBC | 5.0% yield, 4-year raise streak, vs BMO's 3.5% |
| Momentum (1Y) | HSBC | +61.0% vs BMO's +44.5% |
| Efficiency (ROA) | BMO | 0.6% ROA vs HSBC's 0.5%, ROIC 1.8% 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
Bank of Montreal is a major Canadian diversified financial institution providing banking, wealth management, and capital markets services across North America. It generates revenue primarily through net interest income from lending activities (about 60% of total revenue) and non-interest income from capital markets, wealth management, and insurance services. Its competitive advantage stems from its long-established Canadian retail banking franchise—one of the country's "Big Five" banks—with deep customer relationships and extensive branch networks.
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 5 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 1 category is tied.
Financial Metrics (TTM)
HSBC is the larger business by revenue, generating $143.3B annually — 1.8x BMO's $78.1B. HSBC is the more profitable business, keeping 16.7% of every revenue dollar as net income compared to BMO's 11.1%.
| Metric | BMOBank of Montreal | HSBCHSBC Holdings plc |
|---|---|---|
| RevenueTrailing 12 months | $78.1B | $143.3B |
| EBITDAEarnings before interest/tax | $14.5B | $28.6B |
| Net IncomeAfter-tax profit | $9.1B | $17.7B |
| Free Cash FlowCash after capex | $11.0B | $0 |
| Gross MarginGross profit ÷ Revenue | +41.6% | +47.0% |
| Operating MarginEBIT ÷ Revenue | +14.8% | +22.5% |
| Net MarginNet income ÷ Revenue | +11.1% | +16.7% |
| FCF MarginFCF ÷ Revenue | +10.9% | +42.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +19.4% | -17.6% |
Valuation Metrics
At 15.0x trailing earnings, HSBC trades at a 13% valuation discount to BMO's 17.2x P/E. Adjusting for growth (PEG ratio), HSBC offers better value at 0.46x vs BMO's 1.99x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | BMOBank of Montreal | HSBCHSBC Holdings plc |
|---|---|---|
| Market CapShares × price | $102.0B | $319.8B |
| Enterprise ValueMkt cap + debt − cash | $354.0B | $277.7B |
| Trailing P/EPrice ÷ TTM EPS | 17.22x | 15.03x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.18x | 11.63x |
| PEG RatioP/E ÷ EPS growth rate | 1.99x | 0.46x |
| EV / EBITDAEnterprise value multiple | 35.29x | 7.63x |
| Price / SalesMarket cap ÷ Revenue | 1.79x | 2.23x |
| Price / BookPrice ÷ Book value/share | 1.62x | 1.79x |
| Price / FCFMarket cap ÷ FCF | 16.41x | 5.21x |
Profitability & Efficiency
BMO delivers a 10.6% return on equity — every $100 of shareholder capital generates $11 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 BMO's 4.71x. On the Piotroski fundamental quality scale (0–9), HSBC scores 7/9 vs BMO's 6/9, reflecting strong financial health.
| Metric | BMOBank of Montreal | HSBCHSBC Holdings plc |
|---|---|---|
| ROE (TTM)Return on equity | +10.6% | +8.9% |
| ROA (TTM)Return on assets | +0.6% | +0.5% |
| ROICReturn on invested capital | +1.8% | +4.6% |
| ROCEReturn on capital employed | +3.4% | +2.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 4.71x | 1.26x |
| Net DebtTotal debt minus cash | $344.9B | -$42.2B |
| Cash & Equiv.Liquid assets | $70.3B | $284.5B |
| Total DebtShort + long-term debt | $415.2B | $242.3B |
| Interest CoverageEBIT ÷ Interest expense | 0.30x | 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 $19,707 for BMO. Over the past 12 months, HSBC leads with a +61.0% total return vs BMO's +44.5%. The 3-year compound annual growth rate (CAGR) favors HSBC at 39.1% vs BMO's 18.4% — a key indicator of consistent wealth creation.
| Metric | BMOBank of Montreal | HSBCHSBC Holdings plc |
|---|---|---|
| YTD ReturnYear-to-date | +9.8% | +15.8% |
| 1-Year ReturnPast 12 months | +44.5% | +61.0% |
| 3-Year ReturnCumulative with dividends | +66.1% | +169.3% |
| 5-Year ReturnCumulative with dividends | +97.1% | +259.5% |
| 10-Year ReturnCumulative with dividends | +227.9% | +267.7% |
| CAGR (3Y)Annualised 3-year return | +18.4% | +39.1% |
Risk & Volatility
BMO is the less volatile stock with a 0.66 beta — it tends to amplify market swings less than HSBC's 0.83 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | BMOBank of Montreal | HSBCHSBC Holdings plc |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.66x | 0.83x |
| 52-Week HighHighest price in past year | $149.01 | $94.80 |
| 52-Week LowLowest price in past year | $85.40 | $45.66 |
| % of 52W HighCurrent price vs 52-week peak | +96.6% | +98.3% |
| RSI (14)Momentum oscillator 0–100 | 65.7 | 69.1 |
| Avg Volume (50D)Average daily shares traded | 631K | 1.8M |
Analyst Outlook
Wall Street rates BMO as "Buy" and HSBC as "Hold". Consensus price targets imply -44.2% upside for HSBC (target: $52) vs -45.8% for BMO (target: $78). For income investors, HSBC offers the higher dividend yield at 4.96% vs BMO's 3.53%.
| Metric | BMOBank of Montreal | HSBCHSBC Holdings plc |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $78.00 | $52.00 |
| # AnalystsCovering analysts | 18 | 19 |
| Dividend YieldAnnual dividend ÷ price | +3.5% | +5.0% |
| Dividend StreakConsecutive years of raises | 2 | 4 |
| Dividend / ShareAnnual DPS | $6.96 | $4.63 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.4% | +3.7% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Bank of Montreal (BMO) | 100 | 205.9 | +105.9% |
| HSBC Holdings plc (HSBC) | 100 | 275.1 | +175.1% |
HSBC Holdings plc (HSBC) returned +259% over 5 years vs Bank of Montreal (BMO)'s +97%. 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 Montreal (BMO) | $25.5B | $78.1B | +206.9% |
| HSBC Holdings plc (HSBC) | $74.6B | $143.3B | +92.1% |
Bank of Montreal's revenue grew from $25.5B (2016) to $78.1B (2025) — a 13.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Bank of Montreal (BMO) | 18.2% | 11.1% | -38.6% |
| HSBC Holdings plc (HSBC) | 3.3% | 16.7% | +403.4% |
Bank of Montreal's net margin went from 18% (2016) to 11% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Bank of Montreal (BMO) | 10.1 | 11.3 | +11.9% |
| HSBC Holdings plc (HSBC) | 21.5 | 8 | -62.8% |
Bank of Montreal has traded in a 5x–17x P/E range over 9 years; current trailing P/E is ~17x. 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 Montreal (BMO) | 6.92 | 11.44 | +65.3% |
| HSBC Holdings plc (HSBC) | 0.35 | 6.2 | +1671.4% |
Bank of Montreal's EPS grew from $6.92 (2016) to $11.44 (2025) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
Bank of Montreal generated $9B FCF in 2025 (-80% vs 2021). HSBC Holdings plc generated $61B FCF in 2024 (-39% vs 2021).
BMO vs HSBC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BMO or HSBC a better buy right now?
HSBC Holdings plc (HSBC) offers the better valuation at 15.0x trailing P/E (11.6x forward), making it the more compelling value choice. Analysts rate Bank of Montreal (BMO) a "Buy" — based on 18 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 — BMO or HSBC?
On trailing P/E, HSBC Holdings plc (HSBC) is the cheapest at 15.0x versus Bank of Montreal at 17.2x. On forward P/E, Bank of Montreal is actually cheaper at 10.2x — notably different from the trailing picture, reflecting expected earnings growth. 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 Montreal's 1.17x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — BMO or HSBC?
Over the past 5 years, HSBC Holdings plc (HSBC) delivered a total return of +259.5%, compared to +97.1% for Bank of Montreal (BMO). 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: HSBC returned +267.7% versus BMO's +227.9%. 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 — BMO or HSBC?
By beta (market sensitivity over 5 years), Bank of Montreal (BMO) is the lower-risk stock at 0.66β versus HSBC Holdings plc's 0.83β — meaning HSBC is approximately 25% more volatile than BMO 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 Bank of Montreal — giving it more financial flexibility in a downturn.
05Which has better profit margins — BMO or HSBC?
HSBC Holdings plc (HSBC) is the more profitable company, earning 16.7% net margin versus 11.1% for Bank of Montreal — 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 14.8% for BMO. 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 BMO 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 Montreal's 1.17x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Bank of Montreal (BMO) trades at 10.2x forward P/E versus 11.6x for HSBC Holdings plc — 1.5x 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 — BMO or HSBC?
All stocks in this comparison pay dividends. HSBC Holdings plc (HSBC) offers the highest yield at 5.0%, versus 3.5% for Bank of Montreal (BMO).
08Is BMO or HSBC better for a retirement portfolio?
For long-horizon retirement investors, Bank of Montreal (BMO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.66), 3.5% yield, +227.9% 10Y return). Both have compounded well over 10 years (BMO: +227.9%, HSBC: +267.7%), 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 BMO 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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