WallStSmart

HSBC Holdings PLC ADR (HSBC)vsToronto Dominion Bank (TD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Toronto Dominion Bank generates 4% more annual revenue ($65.98B vs $63.22B). HSBC leads profitability with a 35.2% profit margin vs 33.0%. TD appears more attractively valued with a PEG of 1.01. TD earns a higher WallStSmart Score of 83/100 (A-).

HSBC

Strong Buy

77

out of 100

Grade: B+

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

TD

Exceptional Buy

83

out of 100

Grade: A-

Growth: 9.3Profit: 9.5Value: 10.0Quality: 3.0
Piotroski: 5/9Altman Z: -0.64
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
TDUndervalued (+77.4%)

Margin of Safety

+77.4%

Fair Value

$421.20

Current Price

$91.99

$329.21 discount

UndervaluedFair: $421.20Overvalued

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

TD6 strengths · Avg: 9.8/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Profit MarginProfitability
33.0%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

EPS GrowthGrowth
51.3%10/10

Earnings expanding 51.3% YoY

Free Cash FlowQuality
$35.15B10/10

Generating 35.1B in free cash flow

Market CapQuality
$154.24B9/10

Large-cap with strong market position

Areas to Watch

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

Distress zone — elevated risk

TD2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
-0.642/10

Distress zone — elevated risk

Debt/EquityHealth
2.141/10

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 : TD

The strongest argument for TD centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 33.0% and operating margin at 35.9%. Revenue growth of 21.1% demonstrates continued momentum.

Bear Case : HSBC

The primary concerns for HSBC are Altman Z-Score.

Bear Case : TD

The primary concerns for TD are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.14 is elevated, increasing financial risk.

Key Dynamics to Monitor

TD carries more volatility with a beta of 0.85 — expect wider price swings.

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

TD generates stronger free cash flow (35.1B), providing more financial flexibility.

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

Bottom Line

TD scores higher overall (83/100 vs 77/100), backed by strong 33.0% margins and 21.1% revenue growth. HSBC offers better value entry with a 68.7% margin of safety. Both earn "Exceptional 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.

Toronto Dominion Bank

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Toronto-Dominion Bank offers a variety of personal and commercial banking products and services in Canada and the United States. The company is headquartered in Toronto, Canada.

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