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

Dividends

HSBC pays an annual dividend of $2.00 per share and has a dividend yield of 4.5%. WCF Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%.

Institutional & Insider Ownership

2.6% of HSBC shares are held by institutional investors. Comparatively, 19.4% of WCF Bancorp shares are held by institutional investors. 0.6% of WCF Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
HSBC N/A N/A N/A
WCF Bancorp 1.82% 0.31% 0.07%

Analyst Ratings

This is a summary of current recommendations and price targets for HSBC and WCF Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HSBC 1 7 4 0 2.25
WCF Bancorp 0 0 0 0 N/A

Volatility & Risk

HSBC has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, WCF Bancorp has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.

Earnings & Valuation

This table compares HSBC and WCF Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HSBC $53.82 billion 3.33 $9.77 billion N/A N/A
WCF Bancorp $4.44 million 5.35 -$110,000.00 N/A N/A

HSBC has higher revenue and earnings than WCF Bancorp.

Summary

WCF Bancorp beats HSBC on 6 of the 11 factors compared between the two stocks.

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 throughout 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. The company operates through approximately 3,900 offices in 67 countries and territories worldwide. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

About WCF Bancorp

WCF Bancorp, Inc. operates as the savings and loan holding company for WCF Financial Bank that various banking products and services. The company accepts deposit accounts, such as statement savings, money market, and NOW accounts; and certificates of deposit. Its loan products include one-to-four family residential real estate loans; non-owner occupied one-to-four family residential real estate loans; commercial real estate loans; and consumer loans comprising new and used automobile loans, home improvement and home equity loans, recreational vehicle loans, and loans secured by certificates of deposits. The company also invests in securities. It operates one full-service branch in Independence, Iowa. WCF Bancorp, Inc. is based in Webster City, Iowa.

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