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

Valuation & Earnings

This table compares Northeast Community 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
Northeast Community Bancorp $39.55 million 3.59 $8.05 million N/A N/A
HSBC $53.78 billion 3.25 $12.70 billion $3.15 13.90

HSBC has higher revenue and earnings than Northeast Community Bancorp.

Analyst Ratings

This is a breakdown of current ratings and price targets for Northeast Community Bancorp and HSBC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northeast Community Bancorp 0 0 0 0 N/A
HSBC 8 4 0 0 1.33

HSBC has a consensus target price of $40.59, suggesting a potential downside of 7.31%. Given HSBC’s higher possible upside, analysts clearly believe HSBC is more favorable than Northeast Community Bancorp.

Dividends

Northeast Community Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. HSBC pays an annual dividend of $1.50 per share and has a dividend yield of 3.4%. HSBC pays out 47.6% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Northeast Community Bancorp N/A N/A N/A
HSBC N/A 6.45% 0.48%

Institutional & Insider Ownership

1.1% of Northeast Community Bancorp shares are owned by institutional investors. Comparatively, 2.5% of HSBC shares are owned by institutional investors. 0.9% of Northeast Community Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Northeast Community Bancorp has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, HSBC has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Summary

HSBC beats Northeast Community Bancorp on 8 of the 11 factors compared between the two stocks.

About Northeast Community Bancorp

Northeast Community Bancorp, Inc. operates as the holding company for Northeast Community Bank that provides various financial services to consumers and businesses. The company accepts deposit products, such as checking accounts, money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. Its loan products include multi-family, mixed-use, and non-residential real estate loans; commercial and industrial loans; construction loans; consumer loans; passbook, term, small business administration, and cooperative building loans; and revolving lines of credit. The company also offers various ATM/debit, credit, and gift cards; and investment advisory and financial planning, direct and remote deposit, wire transfer, automated clearing house, credit card merchant, coin and currency, and cash management services, as well as Internet, mobile, and telephone banking services. It operates four full-service branches in New York; three full-service branches in Massachusetts; and a loan production office in New City, New York. The company was founded in 1934 and is headquartered in White Plains, New York. Northeast Community Bancorp, Inc. is a subsidiary of Northeast Community Bancorp, MHC.

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.

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