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

Insider and Institutional Ownership

2.5% of HSBC shares are owned by institutional investors. 88.2% of BBX Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

BBX Capital has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, HSBC has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Dividends

BBX Capital pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. HSBC pays an annual dividend of $2.00 per share and has a dividend yield of 4.9%.

Earnings and Valuation

This table compares BBX Capital and HSBC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BBX Capital $815.78 million 0.76 $82.19 million N/A N/A
HSBC $53.82 billion 3.04 $9.77 billion N/A N/A

HSBC has higher revenue and earnings than BBX Capital.

Profitability

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

Net Margins Return on Equity Return on Assets
BBX Capital 9.98% 7.73% 3.10%
HSBC N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for BBX Capital and HSBC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BBX Capital 0 0 0 0 N/A
HSBC 2 7 3 0 2.08

Summary

HSBC beats BBX Capital on 7 of the 12 factors compared between the two stocks.

About BBX Capital

BBX Capital Corp. is a holding company, which engages in the real estate, real estate joint ventures, and middle market operating businesses. It operates through the following segments: Bluegreen, BBX Capital Real Estate, Renin, and BBX Sweet Holdings. The Bluegreen segment markets, sells, and manages real estate-based vacation ownership interests in resorts generally located in popular, high-volume, and drive-to vacation destinations. The BBX Capital Real Estate segment includes acquisition, ownership, and management of real estate, real estate development projects, and investments in real estate joint ventures. The Renin segment comprises manufacture interior closet doors, wall decor, hardware, and fabricated glass products. The BBX Sweet Holdings consists of IT’SUGAR, Hoffman’s Chocolates, and manufacturing facilities in the chocolate and confection industries serving wholesalers such as boutique retailers, big box chains, department stores, national resort properties, corporate customers, and private label brands. The company was founded in 1978 and is headquartered in Fort Lauderdale, FL.

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.

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