Head-To-Head Analysis: HSBC (NYSE:HSBC) & Wayne Savings Bancshares (OTCMKTS:WAYN)

HSBC (NYSE:HSBCGet Rating) and Wayne Savings Bancshares (OTCMKTS:WAYNGet Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for HSBC and Wayne Savings Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HSBC 0 5 3 0 2.38
Wayne Savings Bancshares 0 0 0 0 N/A

Dividends

HSBC pays an annual dividend of $1.34 per share and has a dividend yield of 4.5%. Wayne Savings Bancshares pays an annual dividend of $0.92 per share and has a dividend yield of 3.5%. HSBC pays out 45.0% of its earnings in the form of a dividend. Wayne Savings Bancshares pays out 25.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares HSBC and Wayne Savings Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HSBC 24.55% 6.04% 0.40%
Wayne Savings Bancshares 31.67% 17.25% 1.30%

Valuation and Earnings

This table compares HSBC and Wayne Savings Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HSBC $49.55 billion 2.42 $13.92 billion $2.98 9.89
Wayne Savings Bancshares $24.42 million 2.33 $7.44 million $3.61 7.20

HSBC has higher revenue and earnings than Wayne Savings Bancshares. Wayne Savings Bancshares is trading at a lower price-to-earnings ratio than HSBC, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

1.3% of HSBC shares are held by institutional investors. Comparatively, 12.5% of Wayne Savings Bancshares shares are held by institutional investors. 0.0% of HSBC shares are held by company insiders. Comparatively, 3.2% of Wayne Savings Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

HSBC has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Wayne Savings Bancshares has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500.

About HSBC

(Get Rating)

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions. This segment serves personal banking and high net worth individuals. The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services; commercial cards; international trade and receivables finance services; foreign exchange products; capital raising services on debt and equity markets; and advisory services. It serves small and medium sized enterprises, mid-market enterprises, and corporates. The Global Banking and Markets segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services; and engages in principal investment activities. It serves government, corporate and institutional clients, and private investors. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.

About Wayne Savings Bancshares

(Get Rating)

Wayne Savings Bancshares, Inc. operates as the holding company for Wayne Savings Community Bank that provides personal and business banking products and services to individuals, businesses, and other organizations. The company offers checking, savings, money market, and term certificate accounts, as well as certificates of deposit. It also provides residential mortgage, commercial, installment, residential and nonresidential real estate, commercial real estate, residential construction, multi-family real estate, land, commercial business, consumer, home, home equity, auto, recreational vehicle, personal, furniture and appliance, agriculture, and term loans, as well as lines of credit, government guaranteed programs, and standby letters of credit. In addition, the company offers financial planning, retirement planning, investment advisory, insurance, and wealth management and trust services. Further, it provides overdraft protection, re-order check, remote deposit capture, merchant, sweep, online and mobile banking, and bill pay services, as well as debit, credit, and gift cards. As of January 20, 2022, the company operated through twelve full-service banking locations in the communities of Wooster, Ashland, Millersburg, Rittman, Lodi, North Canton, Creston, Fredericksburg, and Washingtonville, Ohio. Wayne Savings Bancshares, Inc. was founded in 1899 and is based in Wooster, Ohio.

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