WallStSmart

HSBC Holdings PLC ADR (HSBC)vsStepstone Group Inc (STEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HSBC Holdings PLC ADR generates 3099% more annual revenue ($63.77B vs $1.99B). HSBC leads profitability with a 35.0% profit margin vs -26.9%. HSBC earns a higher WallStSmart Score of 63/100 (C+).

HSBC

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 7.0Quality: 4.0
Piotroski: 4/9Altman Z: 0.33

STEP

Avoid

33

out of 100

Grade: F

Growth: 5.7Profit: 2.0Value: 5.0Quality: 5.5
Piotroski: 4/9Altman Z: -0.05

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSBC5 strengths · Avg: 9.2/10
Market CapQuality
$311.14B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
50.7%10/10

Strong operational efficiency at 50.7%

PEG RatioValuation
0.908/10

Growing faster than its price suggests

P/E RatioValuation
15.0x8/10

Attractively priced relative to earnings

STEP2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
55.8%10/10

Revenue surging 55.8% year-over-year

Debt/EquityHealth
-3.1610/10

Conservative balance sheet, low leverage

Areas to Watch

HSBC3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

EPS GrowthGrowth
2.6%4/10

2.6% earnings growth

Altman Z-ScoreHealth
0.332/10

Distress zone — elevated risk

STEP4 concerns · Avg: 2.0/10
Return on EquityProfitability
-55.9%2/10

ROE of -55.9% — below average capital efficiency

EPS GrowthGrowth
-38.5%2/10

Earnings declined 38.5%

Free Cash FlowQuality
$-23.96M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.052/10

Distress zone — elevated risk

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 35.0% and operating margin at 50.7%. PEG of 0.90 suggests the stock is reasonably priced for its growth.

Bull Case : STEP

The strongest argument for STEP centers on Revenue Growth, Debt/Equity. Revenue growth of 55.8% demonstrates continued momentum.

Bear Case : HSBC

The primary concerns for HSBC are Revenue Growth, EPS Growth, Altman Z-Score.

Bear Case : STEP

The primary concerns for STEP are Return on Equity, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

HSBC profiles as a value stock while STEP is a hypergrowth play — different risk/reward profiles.

STEP carries more volatility with a beta of 1.28 — expect wider price swings.

STEP is growing revenue faster at 55.8% — sustainability is the question.

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

Bottom Line

HSBC scores higher overall (63/100 vs 33/100), backed by strong 35.0% margins. Both earn "Buy" and "Avoid" 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.

Stepstone Group Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Stepstone Group Inc. (STEP) is a leading global private markets investment firm, renowned for its tailored investment solutions catering to institutional investors. The firm specializes in private equity, real estate, infrastructure, and private debt, utilizing an extensive network and deep industry insights to uncover premium investment opportunities. With a commitment to optimizing client portfolios through strategic asset allocation and rigorous due diligence, Stepstone is supported by a team of experienced professionals and innovative technology, positioning itself to effectively navigate the complexities of private markets and generate sustainable long-term value for its clients.

Visit Website →

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