FFW (OTCMKTS:FFWC) and HSBC (NYSE:HSBC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares FFW and HSBC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FFW 21.94% N/A N/A
HSBC 23.48% 6.65% 0.49%

Earnings & Valuation

This table compares FFW and HSBC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FFW $19.80 million 2.50 $4.34 million N/A N/A
HSBC $53.78 billion 2.73 $12.70 billion $3.15 11.52

HSBC has higher revenue and earnings than FFW.

Institutional & Insider Ownership

2.2% of HSBC shares are held by institutional investors. 17.0% of FFW shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

FFW has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, HSBC has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Dividends

FFW pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 5.5%. HSBC pays out 62.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for FFW and HSBC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FFW 0 0 0 0 N/A
HSBC 5 2 3 0 1.80

HSBC has a consensus target price of $40.59, indicating a potential upside of 11.85%. Given HSBC’s higher probable upside, analysts plainly believe HSBC is more favorable than FFW.

Summary

HSBC beats FFW on 12 of the 14 factors compared between the two stocks.

About FFW

FFW Corp. operates as a bank holding company. It engages in the provision of investment services through its wholly owned subsidiary. The company was founded in December 1992 and is headquartered in Wabash, IN.

About HSBC

HSBC Holdings plc provides banking and financial products and services. The company operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. The Retail Banking and Wealth Management segment offers personal banking products and services, mortgages and loans, credit cards, insurance and investment products, savings products, international services, and wealth solutions and financial planning services, as well as telephone, Internet, and mobile banking services. The Commercial Banking segment provides services and financing for buyers and suppliers in the trade cycle; liquidity and cash management services; capital financing, including debt, equity, and advisory services; and insurance and investment products, such as business and financial protection, trade insurance, employee benefits, corporate wealth management, and other commercial risk insurance products to small enterprises, mid-market companies, and multinationals. The Global Banking and Markets segment is involved in the provision of advisory, financing, prime, research and analysis, securities, trading and sales, and transaction banking services to corporates, financial institutions, and resources and energy groups. The Global Private Banking segment provides private banking, and investment and wealth management services to business owners, entrepreneurs, and senior executives and their families. As of January 14, 2019, the company operated approximately 3,800 offices in 66 countries and territories worldwide. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

Receive News & Ratings for FFW Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FFW and related companies with MarketBeat.com's FREE daily email newsletter.