HSBC (NYSE:HSBC) versus Provident Bancorp (NYSE:PVBC) Financial Comparison

Provident Bancorp (NASDAQ:PVBC) and HSBC (NYSE:HSBC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Provident Bancorp 18.86% 7.61% 0.99%
HSBC 24.96% 7.16% 0.53%



Risk and Volatility

Provident Bancorp has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, HSBC has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Institutional and Insider Ownership

22.2% of Provident Bancorp shares are held by institutional investors. Comparatively, 2.4% of HSBC shares are held by institutional investors. 3.3% of Provident Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Provident Bancorp and HSBC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Provident Bancorp $46.52 million 5.11 $9.32 million N/A N/A
HSBC $53.78 billion 2.88 $12.70 billion $3.15 12.14

HSBC has higher revenue and earnings than Provident Bancorp.

Dividends

HSBC pays an annual dividend of $2.00 per share and has a dividend yield of 5.2%. Provident Bancorp does not pay a dividend. HSBC pays out 63.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Provident Bancorp and HSBC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Bancorp 0 0 0 0 N/A
HSBC 7 5 1 0 1.54

HSBC has a consensus target price of $40.59, suggesting a potential upside of 6.17%. Given HSBC’s higher probable upside, analysts clearly believe HSBC is more favorable than Provident Bancorp.

Summary

Provident Bancorp beats HSBC on 8 of the 14 factors compared between the two stocks.

Provident Bancorp Company Profile

Provident Bancorp, Inc. is a Massachusetts corporation that was formed in 2011 by The Provident Bank to be its holding company. Approximately 52.1% of Provident Bancorp, Inc. outstanding shares are owned by Provident Bancorp, a Massachusetts corporation and a mutual holding company. The Provident Bank, a subsidiary of Provident Bancorp, Inc., is an innovative, commercial bank that finds solutions for business and private clients. We are committed to strengthening the economic development of the regions we serve, by working closely with businesses and private clients and delivering superior products and high-touch services to meet their banking needs. The Provident has offices in Massachusetts and New Hampshire. All deposits are insured in full through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF).

HSBC Company Profile

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.

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