WallStSmart

HSBC Holdings PLC ADR (HSBC)vsRaytheon Technologies Corp (RTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 40% more annual revenue ($88.60B vs $63.22B). HSBC leads profitability with a 35.2% profit margin vs 7.6%. HSBC appears more attractively valued with a PEG of 1.02. HSBC earns a higher WallStSmart Score of 77/100 (B+).

HSBC

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 7.5Value: 10.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.33

RTX

Buy

55

out of 100

Grade: C-

Growth: 6.0Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSBCUndervalued (+68.7%)

Margin of Safety

+68.7%

Fair Value

$280.80

Current Price

$81.21

$199.59 discount

UndervaluedFair: $280.80Overvalued
RTXSignificantly Overvalued (-95.4%)

Margin of Safety

-95.4%

Fair Value

$99.80

Current Price

$195.00

$95.20 premium

UndervaluedFair: $99.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSBC6 strengths · Avg: 9.3/10
Market CapQuality
$264.52B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
35.2%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
55.2%10/10

Strong operational efficiency at 55.2%

Revenue GrowthGrowth
58.4%10/10

Revenue surging 58.4% year-over-year

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
24.0%8/10

Earnings expanding 24.0% YoY

RTX2 strengths · Avg: 9.0/10
Market CapQuality
$261.12B10/10

Mega-cap, among the largest globally

Free Cash FlowQuality
$3.19B8/10

Generating 3.2B in free cash flow

Areas to Watch

HSBC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.332/10

Distress zone — elevated risk

Debt/EquityHealth
2.791/10

Elevated debt levels

RTX4 concerns · Avg: 3.3/10
P/E RatioValuation
39.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

PEG RatioValuation
2.782/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 : RTX

The strongest argument for RTX centers on Market Cap, Free Cash Flow. Revenue growth of 12.1% 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 : RTX

The primary concerns for RTX are P/E Ratio, Altman Z-Score, Profit Margin.

Key Dynamics to Monitor

HSBC profiles as a growth stock while RTX is a value play — different risk/reward profiles.

HSBC carries more volatility with a beta of 0.47 — 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.

Bottom Line

HSBC scores higher overall (77/100 vs 55/100), backed by strong 35.2% margins and 58.4% revenue growth. Both earn "Strong Buy" and "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.

Raytheon Technologies Corp

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.

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