HSBC (NYSE:HSBC) versus Grupo Cibest (NYSE:CIB) Financial Analysis

HSBC (NYSE:HSBC) and Grupo Cibest (NYSE:CIB) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

1.5% of HSBC shares are owned by institutional investors. 0.0% of HSBC shares are owned 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.

Risk and Volatility

HSBC has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Grupo Cibest has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for HSBC and Grupo Cibest, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HSBC	0	6	5	0	2.45
Grupo Cibest	2	7	0	0	1.78

HSBC currently has a consensus price target of $63.00, suggesting a potential downside of 32.76%. Grupo Cibest has a consensus price target of $67.00, suggesting a potential downside of 2.53%. Given Grupo Cibest’s higher probable upside, analysts clearly believe Grupo Cibest is more favorable than HSBC.

Profitability

This table compares HSBC and Grupo Cibest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HSBC	16.06%	13.35%	0.82%
Grupo Cibest	8.41%	21.07%	2.18%

Valuation & Earnings

This table compares HSBC and Grupo Cibest”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HSBC	$67.61 billion	4.76	$22.29 billion	$6.10	15.36
Grupo Cibest	$10.45 billion	1.56	$764.13 million	$3.60	19.09

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

Dividends

HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 2.1%. Grupo Cibest pays an annual dividend of $4.90 per share and has a dividend yield of 7.1%. HSBC pays out 32.5% of its earnings in the form of a dividend. Grupo Cibest pays out 136.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

HSBC beats Grupo Cibest on 10 of the 16 factors compared between the two stocks.

About HSBC

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 Grupo Cibest

Bancolombia S.A., together with its subsidiaries, provides banking products and services in Colombia and internationally. The company operates through nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and All Other. It offers checking and savings accounts, money market accounts, time deposits, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, and overdrafts; factoring; and financial and operating leasing services. The company provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services comprising selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency and trade finance solutions; letters of credit and bills collection; insurance and bancassurance products; telephone and mobile phone banking services; and online and computer banking services. Further, the company provides project and acquisition finance, loan syndication, corporate loans, debt and equity capital markets, principal investments, mergers and acquisition, hedging strategy advisories, restructurings, and structured financing; mutual and pension funds, private equity funds, payment and corporate trust, and custody; internet-based trading platform; inter-bank lending and repurchase agreements; managing escrow accounts, and investment and real estate funds; credit cards; roadside and medical assistance services; and transportation, maintenance and remodeling, and outsourcing services, as well as provides technology services. Bancolombia S.A. was founded in 1875 and is headquartered in Medellín, Colombia.