HSBC Holdings PLC ADR (HSBC)vsMastercard Inc (MA)
HSBC
HSBC Holdings PLC ADR
$81.21
+2.45%
FINANCIAL SERVICES · Cap: $264.52B
MA
Mastercard Inc
$502.76
+0.77%
FINANCIAL SERVICES · Cap: $445.26B
Smart Verdict
WallStSmart Research — data-driven comparison
HSBC Holdings PLC ADR generates 93% more annual revenue ($63.22B vs $32.79B). MA leads profitability with a 45.7% profit margin vs 35.2%. HSBC appears more attractively valued with a PEG of 1.02. HSBC earns a higher WallStSmart Score of 77/100 (B+).
HSBC
Strong Buy77
out of 100
Grade: B+
MA
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+68.7%
Fair Value
$280.80
Current Price
$81.21
$199.59 discount
Margin of Safety
+33.1%
Fair Value
$751.54
Current Price
$502.76
$248.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 55.2%
Revenue surging 58.4% year-over-year
Attractively priced relative to earnings
Earnings expanding 24.0% YoY
Mega-cap, among the largest globally
Keeps 46 of every $100 in revenue as profit
Strong operational efficiency at 57.7%
Safe zone — low bankruptcy risk
17.6% revenue growth
Earnings expanding 24.2% YoY
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 2.1% — below average capital efficiency
Trading at 58.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : HSBC
The strongest argument for HSBC centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 35.2% and operating margin at 55.2%. Revenue growth of 58.4% demonstrates continued momentum.
Bull Case : MA
The strongest argument for MA centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 45.7% and operating margin at 57.7%. Revenue growth of 17.6% demonstrates continued momentum.
Bear Case : HSBC
The primary concerns for HSBC are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.79 is elevated, increasing financial risk.
Bear Case : MA
The primary concerns for MA are PEG Ratio, P/E Ratio, Return on Equity. Debt-to-equity of 2.45 is elevated, increasing financial risk.
Key Dynamics to Monitor
MA carries more volatility with a beta of 0.84 — expect wider price swings.
HSBC is growing revenue faster at 58.4% — sustainability is the question.
HSBC generates stronger free cash flow (9.4B), providing more financial flexibility.
Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HSBC scores higher overall (77/100 vs 70/100), backed by strong 35.2% margins and 58.4% revenue growth. MA offers better value entry with a 33.1% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
HSBC Holdings PLC ADR
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
HSBC Holdings plc offers banking and financial products and services globally. The company is headquartered in London, the United Kingdom.
Mastercard Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Headquarters is located in O'Fallon, Missouri, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006.
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