WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HSBC Holdings PLC ADR generates 3258% more annual revenue ($67.43B vs $2.01B). HSBC leads profitability with a 37.8% profit margin vs -30.5%. HSBC earns a higher WallStSmart Score of 69/100 (B-).

HSBC

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 7.0Quality: 4.0
Piotroski: 4/9Altman Z: -0.31

STEP

Avoid

25

out of 100

Grade: F

Growth: 3.7Profit: 2.0Value: 5.0Quality: 7.0
Piotroski: 4/9Altman Z: -0.05

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSBC6 strengths · Avg: 9.0/10
Market CapQuality
$366.94B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
37.8%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
58.8%10/10

Strong operational efficiency at 58.8%

PEG RatioValuation
0.948/10

Growing faster than its price suggests

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
25.4%8/10

Revenue surging 25.4% year-over-year

STEP1 strengths · Avg: 10.0/10
Debt/EquityHealth
-2.9110/10

Conservative balance sheet, low leverage

Areas to Watch

HSBC3 concerns · Avg: 3.3/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

EPS GrowthGrowth
2.6%4/10

2.6% earnings growth

Altman Z-ScoreHealth
-0.312/10

Distress zone — elevated risk

STEP4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

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
$-458.06M2/10

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 37.8% and operating margin at 58.8%. Revenue growth of 25.4% demonstrates continued momentum.

Bull Case : STEP

The strongest argument for STEP centers on Debt/Equity.

Bear Case : HSBC

The primary concerns for HSBC are Price/Book, EPS Growth, Altman Z-Score.

Bear Case : STEP

The primary concerns for STEP are Revenue Growth, Return on Equity, EPS Growth.

Key Dynamics to Monitor

HSBC profiles as a growth stock while STEP is a turnaround play — different risk/reward profiles.

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

HSBC is growing revenue faster at 25.4% — sustainability is the question.

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

Bottom Line

HSBC scores higher overall (69/100 vs 25/100), backed by strong 37.8% margins and 25.4% revenue growth. Both earn "Strong 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 investment firm that specializes in private markets, delivering tailored investment solutions to institutional investors. The firm employs a strategic focus across various asset classes, including private equity, real estate, infrastructure, and private debt, leveraging its extensive network and deep sector expertise to uncover high-quality opportunities. With a commitment to disciplined asset allocation and rigorous due diligence, Stepstone combines the skills of a seasoned team with advanced technology, positioning itself to navigate the complexities of private markets and strive for sustainable, long-term value creation for clients.

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