Analyzing HSBC (NYSE:HSBC) & Grupo Supervielle (NYSE:SUPV)

HSBC (NYSE:HSBC) and Grupo Supervielle (NYSE:SUPV) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares HSBC and Grupo Supervielle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HSBC	13.48%	12.73%	0.81%
Grupo Supervielle	4.08%	6.82%	1.16%

Valuation and Earnings

This table compares HSBC and Grupo Supervielle”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HSBC	$141.75 billion	1.61	$23.98 billion	$5.05	13.06
Grupo Supervielle	$2.05 billion	0.25	$114.94 million	$0.66	8.67

HSBC has higher revenue and earnings than Grupo Supervielle. Grupo Supervielle is trading at a lower price-to-earnings ratio than HSBC, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

HSBC has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Grupo Supervielle has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Insider and Institutional Ownership

1.5% of HSBC shares are owned by institutional investors. 0.0% of HSBC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 3.0%. Grupo Supervielle pays an annual dividend of $0.19 per share and has a dividend yield of 3.3%. HSBC pays out 39.2% of its earnings in the form of a dividend. Grupo Supervielle pays out 28.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Grupo Supervielle is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for HSBC and Grupo Supervielle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HSBC	0	7	3	1	2.45
Grupo Supervielle	0	3	1	0	2.25

HSBC currently has a consensus price target of $63.00, suggesting a potential downside of 4.48%. Grupo Supervielle has a consensus price target of $17.00, suggesting a potential upside of 196.94%. Given Grupo Supervielle’s higher probable upside, analysts clearly believe Grupo Supervielle is more favorable than HSBC.

Summary

HSBC beats Grupo Supervielle on 12 of the 17 factors compared between the two stocks.

About HSBC

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions. This segment serves personal banking and high net worth individuals. The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services; commercial cards; international trade and receivables finance services; foreign exchange products; capital raising services on debt and equity markets; and advisory services. It serves small and medium sized enterprises, mid-market enterprises, and corporates. The Global Banking and Markets segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services; and engages in principal investment activities. It serves government, corporate and institutional clients, and private investors. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

About Grupo Supervielle

Grupo Supervielle S.A., a financial services holding company, provides various banking products and services in Argentina. The company operates through Personal & Business Banking, Corporate Banking, Bank Treasury, Consumer Finance, Insurance, and Asset Management and Other Services segments. It offers savings accounts, time and demand deposits, and checking accounts; various loan products, including personal, consumer, mortgage, unsecured, and car loans; overdrafts; loans with special facilities for project and working capital financing; and leasing, bank guarantees for tenants, salary advances, domestic and international factoring, international guarantees and letters of credit, payroll payment plans, credit and debit cards, and senior citizens benefit payment services, as well as financial services and investments, such as mutual funds and guarantees. The company also provides foreign trade and cash management; advisory services; treasury services; insurance products comprising life, home, personal accidents, technology, ATMs, protected bag, and protected content; and asset management and other services, as well as operates as a digital online broker. It operates through a network of bank branches, ATMs, and self-service terminals, as well as ATMs with biometric identification. The company was formerly known as Inversiones y Participaciones S.A. and changed its name to Grupo Supervielle S.A. in November 2008. Grupo Supervielle S.A. was founded in 1887 and is based in Buenos Aires, Argentina.