WallStSmart

HSBC Holdings PLC ADR (HSBC)vsSherwin-Williams Co (SHW)

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Smart Verdict

WallStSmart Research — data-driven comparison

HSBC Holdings PLC ADR generates 168% more annual revenue ($63.22B vs $23.57B). HSBC leads profitability with a 35.2% profit margin vs 10.9%. 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

SHW

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 4.7Quality: 5.0
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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
SHWSignificantly Overvalued (-237.9%)

Margin of Safety

-237.9%

Fair Value

$92.84

Current Price

$321.95

$229.11 premium

UndervaluedFair: $92.84Overvalued

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

SHW2 strengths · Avg: 9.5/10
Return on EquityProfitability
59.4%10/10

Every $100 of equity generates 59 in profit

Market CapQuality
$77.79B9/10

Large-cap with strong market position

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

SHW4 concerns · Avg: 3.5/10
P/E RatioValuation
30.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.2x4/10

Trading at 17.2x book value

EPS GrowthGrowth
1.4%4/10

1.4% earnings growth

PEG RatioValuation
2.632/10

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 : SHW

The strongest argument for SHW centers on Return on Equity, Market Cap.

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 : SHW

The primary concerns for SHW are P/E Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

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

SHW carries more volatility with a beta of 1.24 — 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 54/100), 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.

Sherwin-Williams Co

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Sherwin Williams Company is a Cleveland, Ohio based company in the paint and coating manufacturing industry. The company primarily engages in the manufacture, distribution, and sale of paints, coatings, floorcoverings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America and Europe.

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