WallStSmart

Bank of Nova Scotia (BNS)vsHSBC Holdings PLC ADR (HSBC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HSBC Holdings PLC ADR generates 90% more annual revenue ($63.22B vs $33.25B). HSBC leads profitability with a 35.2% profit margin vs 26.9%. HSBC appears more attractively valued with a PEG of 1.02. BNS earns a higher WallStSmart Score of 79/100 (B+).

BNS

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 7.5Value: 10.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.61

HSBC

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 7.5Value: 10.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BNSUndervalued (+66.4%)

Margin of Safety

+66.4%

Fair Value

$229.79

Current Price

$69.39

$160.40 discount

UndervaluedFair: $229.79Overvalued
HSBCUndervalued (+68.7%)

Margin of Safety

+68.7%

Fair Value

$280.80

Current Price

$81.21

$199.59 discount

UndervaluedFair: $280.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BNS6 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
37.5%10/10

Strong operational efficiency at 37.5%

Market CapQuality
$84.29B9/10

Large-cap with strong market position

Profit MarginProfitability
26.9%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
23.5%8/10

Revenue surging 23.5% year-over-year

HSBC6 strengths · Avg: 9.3/10
Market CapQuality
$264.52B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
35.2%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
55.2%10/10

Strong operational efficiency at 55.2%

Revenue GrowthGrowth
58.4%10/10

Revenue surging 58.4% year-over-year

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
24.0%8/10

Earnings expanding 24.0% YoY

Areas to Watch

BNS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

EPS GrowthGrowth
1.6%4/10

1.6% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-9.30B2/10

Negative free cash flow — burning cash

HSBC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.332/10

Distress zone — elevated risk

Debt/EquityHealth
2.791/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : BNS

The strongest argument for BNS centers on Price/Book, Operating Margin, Market Cap. Profitability is solid with margins at 26.9% and operating margin at 37.5%. Revenue growth of 23.5% demonstrates continued momentum.

Bull Case : HSBC

The strongest argument for HSBC centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 35.2% and operating margin at 55.2%. Revenue growth of 58.4% demonstrates continued momentum.

Bear Case : BNS

The primary concerns for BNS are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 5.80 is elevated, increasing financial risk.

Bear Case : HSBC

The primary concerns for HSBC are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.79 is elevated, increasing financial risk.

Key Dynamics to Monitor

BNS carries more volatility with a beta of 1.19 — expect wider price swings.

HSBC is growing revenue faster at 58.4% — sustainability is the question.

HSBC generates stronger free cash flow (9.4B), providing more financial flexibility.

Monitor BANKS - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

BNS scores higher overall (79/100 vs 77/100), backed by strong 26.9% margins and 23.5% revenue growth. HSBC offers better value entry with a 68.7% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Bank of Nova Scotia

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

The Bank of Nova Scotia offers various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. The company is headquartered in Halifax, Canada.

HSBC Holdings PLC ADR

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

HSBC Holdings plc offers banking and financial products and services globally. The company is headquartered in London, the United Kingdom.

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