Comprehensive Stock Comparison
Compare Wells Fargo & Company (WFC) 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 WFC's 8.7% |
| Value | HSBC | PEG 0.35 vs 2.07 |
| Quality / Margins | HSBC | 16.7% net margin vs WFC's 15.7% |
| Stability / Safety | HSBC | Beta 0.83 vs WFC's 1.04, lower leverage |
| Dividends | HSBC | 5.0% yield, 4-year raise streak, vs WFC's 1.8% |
| Momentum (1Y) | HSBC | +61.0% vs WFC's +6.2% |
| Efficiency (ROA) | WFC | 1.0% ROA vs HSBC's 0.5%, ROIC 3.7% 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
Wells Fargo is one of America's largest diversified financial services companies operating primarily through its extensive branch network. It generates revenue from interest income on loans (roughly 60% of total revenue) and non-interest income from fees for banking services, wealth management, and investment banking. Its key competitive advantage is its massive retail banking footprint—with thousands of branches serving millions of customers—which creates a stable deposit base and cross-selling opportunities.
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 6 of 6 categories — strongest in Financial Metrics and Valuation Metrics.
Financial Metrics (TTM)
HSBC and WFC operate at a comparable scale, with $143.3B and $125.4B in trailing revenue. Profitability is closely matched — net margins range from 16.7% (HSBC) to 15.7% (WFC).
| Metric | WFCWells Fargo & Com… | HSBCHSBC Holdings plc |
|---|---|---|
| RevenueTrailing 12 months | $125.4B | $143.3B |
| EBITDAEarnings before interest/tax | $31.6B | $28.6B |
| Net IncomeAfter-tax profit | $21.1B | $17.7B |
| Free Cash FlowCash after capex | -$14.2B | $0 |
| Gross MarginGross profit ÷ Revenue | +62.2% | +47.0% |
| Operating MarginEBIT ÷ Revenue | +18.6% | +22.5% |
| Net MarginNet income ÷ Revenue | +15.7% | +16.7% |
| FCF MarginFCF ÷ Revenue | +2.4% | +42.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +16.9% | -17.6% |
Valuation Metrics
At 15.0x trailing earnings, HSBC trades at a 1% valuation discount to WFC's 15.2x P/E. Adjusting for growth (PEG ratio), HSBC offers better value at 0.46x vs WFC's 2.71x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | WFCWells Fargo & Com… | HSBCHSBC Holdings plc |
|---|---|---|
| Market CapShares × price | $251.8B | $319.8B |
| Enterprise ValueMkt cap + debt − cash | $330.4B | $277.7B |
| Trailing P/EPrice ÷ TTM EPS | 15.16x | 15.03x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.58x | 11.63x |
| PEG RatioP/E ÷ EPS growth rate | 2.71x | 0.46x |
| EV / EBITDAEnterprise value multiple | 10.68x | 7.63x |
| Price / SalesMarket cap ÷ Revenue | 2.01x | 2.23x |
| Price / BookPrice ÷ Book value/share | 1.56x | 1.79x |
| Price / FCFMarket cap ÷ FCF | 82.98x | 5.21x |
Profitability & Efficiency
WFC delivers a 11.5% 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 WFC's 1.56x. On the Piotroski fundamental quality scale (0–9), HSBC scores 7/9 vs WFC's 6/9, reflecting strong financial health.
| Metric | WFCWells Fargo & Com… | HSBCHSBC Holdings plc |
|---|---|---|
| ROE (TTM)Return on equity | +11.5% | +8.9% |
| ROA (TTM)Return on assets | +1.0% | +0.5% |
| ROICReturn on invested capital | +3.7% | +4.6% |
| ROCEReturn on capital employed | +5.0% | +2.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 1.56x | 1.26x |
| Net DebtTotal debt minus cash | $78.5B | -$42.2B |
| Cash & Equiv.Liquid assets | $203.4B | $284.5B |
| Total DebtShort + long-term debt | $281.9B | $242.3B |
| Interest CoverageEBIT ÷ Interest expense | 0.60x | 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 $23,722 for WFC. Over the past 12 months, HSBC leads with a +61.0% total return vs WFC's +6.2%. The 3-year compound annual growth rate (CAGR) favors HSBC at 39.1% vs WFC's 22.6% — a key indicator of consistent wealth creation.
| Metric | WFCWells Fargo & Com… | HSBCHSBC Holdings plc |
|---|---|---|
| YTD ReturnYear-to-date | -14.0% | +15.8% |
| 1-Year ReturnPast 12 months | +6.2% | +61.0% |
| 3-Year ReturnCumulative with dividends | +84.1% | +169.3% |
| 5-Year ReturnCumulative with dividends | +137.2% | +259.5% |
| 10-Year ReturnCumulative with dividends | +103.6% | +267.7% |
| CAGR (3Y)Annualised 3-year return | +22.6% | +39.1% |
Risk & Volatility
HSBC is the less volatile stock with a 0.83 beta — it tends to amplify market swings less than WFC's 1.04 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 WFC's 83.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | WFCWells Fargo & Com… | HSBCHSBC Holdings plc |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.04x | 0.83x |
| 52-Week HighHighest price in past year | $97.76 | $94.80 |
| 52-Week LowLowest price in past year | $58.42 | $45.66 |
| % of 52W HighCurrent price vs 52-week peak | +83.3% | +98.3% |
| RSI (14)Momentum oscillator 0–100 | 42.7 | 69.1 |
| Avg Volume (50D)Average daily shares traded | 12.4M | 1.8M |
Analyst Outlook
Wall Street rates WFC as "Hold" and HSBC as "Hold". Consensus price targets imply 22.8% upside for WFC (target: $100) vs -44.2% for HSBC (target: $52). For income investors, HSBC offers the higher dividend yield at 4.96% vs WFC's 1.82%.
| Metric | WFCWells Fargo & Com… | HSBCHSBC Holdings plc |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $100.00 | $52.00 |
| # AnalystsCovering analysts | 59 | 19 |
| Dividend YieldAnnual dividend ÷ price | +1.8% | +5.0% |
| Dividend StreakConsecutive years of raises | 3 | 4 |
| Dividend / ShareAnnual DPS | $1.48 | $4.63 |
| Buyback YieldShare repurchases ÷ mkt cap | +8.8% | +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 |
|---|---|---|---|
| Wells Fargo & Compa… (WFC) | 100 | 218.34 | +118.3% |
| HSBC Holdings plc (HSBC) | 100 | 265.32 | +165.3% |
HSBC Holdings plc (HSBC) returned +259% over 5 years vs Wells Fargo & Compa… (WFC)'s +137%. A $10,000 investment in HSBC 5 years ago would be worth $35,948 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Wells Fargo & Compa… (WFC) | $87.8B | $125.4B | +42.8% |
| HSBC Holdings plc (HSBC) | $87.2B | $143.3B | +64.4% |
Wells Fargo & Company's revenue grew from $87.8B (2015) to $125.4B (2024) — a 4.0% 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 |
|---|---|---|---|
| Wells Fargo & Compa… (WFC) | 26.1% | 15.7% | -39.7% |
| HSBC Holdings plc (HSBC) | 15.5% | 16.7% | +7.9% |
Wells Fargo & Company's net margin went from 26% (2015) to 16% (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 |
|---|---|---|---|
| Wells Fargo & Compa… (WFC) | 14.8 | 13.1 | -11.5% |
| HSBC Holdings plc (HSBC) | 21.5 | 8 | -62.8% |
Wells Fargo & Company has traded in a 10x–74x P/E range over 8 years; current trailing P/E is ~15x. 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 |
|---|---|---|---|
| Wells Fargo & Compa… (WFC) | 4.12 | 5.37 | +30.3% |
| HSBC Holdings plc (HSBC) | 3.2 | 6.2 | +93.8% |
Wells Fargo & Company's EPS grew from $4.12 (2015) to $5.37 (2024) — a 3% CAGR. HSBC Holdings plc's EPS grew from $3.20 (2015) to $6.20 (2024) — a 8% CAGR.
Chart 6Free Cash Flow — 5 Years
Wells Fargo & Company generated $3B FCF in 2024 (+126% vs 2021). HSBC Holdings plc generated $61B FCF in 2024 (-39% vs 2021).
WFC vs HSBC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is WFC 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 Wells Fargo & Company (WFC) a "Hold" — based on 59 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 — WFC or HSBC?
On trailing P/E, HSBC Holdings plc (HSBC) is the cheapest at 15.0x versus Wells Fargo & Company at 15.2x. On forward P/E, Wells Fargo & Company is actually cheaper at 11.6x — 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 Wells Fargo & Company's 2.07x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — WFC or HSBC?
Over the past 5 years, HSBC Holdings plc (HSBC) delivered a total return of +259.5%, compared to +137.2% for Wells Fargo & Company (WFC). 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 WFC's +103.6%. 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 — WFC or HSBC?
By beta (market sensitivity over 5 years), HSBC Holdings plc (HSBC) is the lower-risk stock at 0.83β versus Wells Fargo & Company's 1.04β — meaning WFC is approximately 25% 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 156% for Wells Fargo & Company — giving it more financial flexibility in a downturn.
05Which has better profit margins — WFC or HSBC?
HSBC Holdings plc (HSBC) is the more profitable company, earning 16.7% net margin versus 15.7% for Wells Fargo & Company — 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 18.6% for WFC. At the gross margin level — before operating expenses — WFC leads at 62.2%, 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 WFC 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 Wells Fargo & Company's 2.07x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Wells Fargo & Company (WFC) trades at 11.6x forward P/E versus 11.6x for HSBC Holdings plc — 0.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WFC: 22.8% to $100.00.
07Which pays a better dividend — WFC or HSBC?
All stocks in this comparison pay dividends. HSBC Holdings plc (HSBC) offers the highest yield at 5.0%, versus 1.8% for Wells Fargo & Company (WFC).
08Is WFC 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%, WFC: +103.6%), 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 WFC 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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