Head to Head Comparison: HSBC (NYSE:HSBC) & CNB Financial (NASDAQ:CCNE)

CNB Financial (NASDAQ:CCNE) and HSBC (NYSE:HSBC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Risk and Volatility

CNB Financial has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, HSBC has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Earnings and Valuation

This table compares CNB Financial and HSBC”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNB Financial	$432.51 million	2.51	$66.13 million	$3.80	9.63
HSBC	$131.35 billion	2.25	$22.29 billion	$7.70	11.21

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

Profitability

This table compares CNB Financial and HSBC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNB Financial	23.26%	13.23%	1.30%
HSBC	19.59%	14.33%	0.85%

Analyst Ratings

This is a summary of recent ratings and target prices for CNB Financial and HSBC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNB Financial	0	2	4	0	2.67
HSBC	2	10	4	0	2.12

CNB Financial currently has a consensus price target of $37.20, indicating a potential upside of 1.63%. HSBC has a consensus price target of $97.00, indicating a potential upside of 12.41%. Given HSBC’s higher possible upside, analysts clearly believe HSBC is more favorable than CNB Financial.

Dividends

CNB Financial pays an annual dividend of $0.76 per share and has a dividend yield of 2.1%. HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 2.3%. CNB Financial pays out 20.0% of its earnings in the form of a dividend. HSBC pays out 25.7% 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. CNB Financial has raised its dividend for 1 consecutive years.

Institutional & Insider Ownership

52.3% of CNB Financial shares are owned by institutional investors. Comparatively, 1.5% of HSBC shares are owned by institutional investors. 2.9% of CNB Financial shares are owned by insiders. Comparatively, 0.0% of HSBC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

CNB Financial beats HSBC on 9 of the 16 factors compared between the two stocks.

About CNB Financial

CNB Financial Corporation operates as the bank holding company for CNB Bank that provides a range of banking products and services for individual, business, governmental, and institutional customers. The company accepts checking, savings, and time deposit accounts; and offers real estate, commercial, industrial, residential, and consumer loans, as well as various other specialized financial services. It also provides private banking; and wealth and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, as well as a range of wealth management services. In addition, the company invests in debt and equity securities; sells nonproprietary annuities and other insurance products; and offers small balance unsecured loans and secured loans primarily collateralized by automobiles and equipment, as well as engages in consumer discount loan and finance business. The company was founded in 1865 and is headquartered in Clearfield, Pennsylvania.

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.