HSBC (NYSE:HSBC) and Blackhawk Bancorp (OTCMKTS:BHWB) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.
Valuation and Earnings
This table compares HSBC and Blackhawk Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|HSBC||$53.78 billion||3.09||$12.70 billion||$3.15||13.22|
|Blackhawk Bancorp||$35.46 million||2.54||$6.20 million||N/A||N/A|
HSBC has higher revenue and earnings than Blackhawk Bancorp.
This is a summary of current recommendations for HSBC and Blackhawk Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HSBC presently has a consensus price target of $40.59, indicating a potential downside of 2.50%. Given HSBC’s higher possible upside, analysts clearly believe HSBC is more favorable than Blackhawk Bancorp.
Insider and Institutional Ownership
2.5% of HSBC shares are owned by institutional investors. Comparatively, 2.1% of Blackhawk Bancorp shares are owned by institutional investors. 26.8% of Blackhawk Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares HSBC and Blackhawk Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
HSBC has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Blackhawk Bancorp has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500.
HSBC pays an annual dividend of $2.00 per share and has a dividend yield of 4.8%. Blackhawk Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. HSBC pays out 63.5% of its earnings in the form of a dividend.
HSBC beats Blackhawk Bancorp on 10 of the 12 factors compared between the two stocks.
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.
About Blackhawk Bancorp
Blackhawk Bancorp, Inc. provides banking solutions. The company offers demand deposits and interest and non-interest bearing time and savings deposits. The bank's deposits include jumbo deposits and retail time deposits. It provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. The company offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. The company offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. The company offers domestic and foreign commercial and industrial loans. The company offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. For 2017, the bank has an asset value of 720,622 USD. It has generated a net income of 6,200 USD in December 31, 2017. Blackhawk Bancorp, Inc. was founded in 1881 and is based in Beloit, Wisconsin.
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