WallStSmart

HSBC Holdings PLC ADR (HSBC)vsCharles Schwab Corp (SCHW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HSBC Holdings PLC ADR generates 164% more annual revenue ($63.22B vs $23.92B). SCHW leads profitability with a 37.0% profit margin vs 35.2%. 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

SCHW

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 8.0Value: 10.0Quality: 8.3
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSBCUndervalued (+68.7%)

Margin of Safety

+68.7%

Fair Value

$280.80

Current Price

$79.46

$201.34 discount

UndervaluedFair: $280.80Overvalued
SCHWUndervalued (+57.1%)

Margin of Safety

+57.1%

Fair Value

$217.62

Current Price

$93.99

$123.63 discount

UndervaluedFair: $217.62Overvalued

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

SCHW6 strengths · Avg: 9.2/10
Profit MarginProfitability
37.0%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
49.7%10/10

Strong operational efficiency at 49.7%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Market CapQuality
$166.37B9/10

Large-cap with strong market position

Revenue GrowthGrowth
18.9%8/10

18.9% revenue growth

EPS GrowthGrowth
41.1%8/10

Earnings expanding 41.1% YoY

Areas to Watch

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

Distress zone — elevated risk

SCHW1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-921.00M2/10

Negative free cash flow — burning cash

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 : SCHW

The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% demonstrates continued momentum.

Bear Case : HSBC

The primary concerns for HSBC are Altman Z-Score.

Bear Case : SCHW

The primary concerns for SCHW are Free Cash Flow.

Key Dynamics to Monitor

SCHW 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.

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 75/100), backed by strong 35.2% margins and 58.4% revenue growth. SCHW offers better value entry with a 57.1% 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.

Charles Schwab Corp

FINANCIAL SERVICES · CAPITAL MARKETS · USA

The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.

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