WallStSmart

HSBC Holdings PLC ADR (HSBC)vsBanco Santander SA ADR (SAN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HSBC Holdings PLC ADR generates 35% more annual revenue ($63.22B vs $46.84B). HSBC leads profitability with a 35.2% profit margin vs 30.1%. HSBC appears more attractively valued with a PEG of 1.08. HSBC earns a higher WallStSmart Score of 77/100 (B+).

HSBC

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 9.0Value: 10.0Quality: 5.0
Piotroski: 4/9Altman Z: -0.41

SAN

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 7.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSBCUndervalued (+68.7%)

Margin of Safety

+68.7%

Fair Value

$280.80

Current Price

$76.95

$203.85 discount

UndervaluedFair: $280.80Overvalued
SANUndervalued (+72.2%)

Margin of Safety

+72.2%

Fair Value

$44.93

Current Price

$10.53

$34.40 discount

UndervaluedFair: $44.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSBC6 strengths · Avg: 9.7/10
Market CapQuality
$274.80B10/10

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

EPS GrowthGrowth
2398.0%10/10

Earnings expanding 2398.0% YoY

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

SAN6 strengths · Avg: 9.5/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.1%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
43.7%10/10

Strong operational efficiency at 43.7%

Market CapQuality
$159.67B9/10

Large-cap with strong market position

EPS GrowthGrowth
25.3%8/10

Earnings expanding 25.3% YoY

Areas to Watch

HSBC1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
-0.412/10

Distress zone — elevated risk

SAN4 concerns · Avg: 1.8/10
PEG RatioValuation
2.612/10

Expensive relative to growth rate

Revenue GrowthGrowth
-6.4%2/10

Revenue declined 6.4%

Altman Z-ScoreHealth
0.382/10

Distress zone — elevated risk

Debt/EquityHealth
4.471/10

Elevated debt levels

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 : SAN

The strongest argument for SAN centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.1% and operating margin at 43.7%.

Bear Case : HSBC

The primary concerns for HSBC are Altman Z-Score.

Bear Case : SAN

The primary concerns for SAN are PEG Ratio, Revenue Growth, Altman Z-Score. Debt-to-equity of 4.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

HSBC profiles as a growth stock while SAN is a declining play — different risk/reward profiles.

SAN carries more volatility with a beta of 0.92 — expect wider price swings.

HSBC is growing revenue faster at 58.4% — sustainability is the question.

Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HSBC scores higher overall (77/100 vs 63/100), backed by strong 35.2% margins and 58.4% revenue growth. SAN offers better value entry with a 72.2% margin of safety. 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.

Banco Santander SA ADR

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Banco Santander, SA, offers various commercial and retail banking products and services to individuals, small and medium-sized companies and large companies worldwide. The company is headquartered in Madrid, Spain.

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