WallStSmart

HDFC Bank Limited ADR (HDB)vsTFS Financial Corporation (TFSL)

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Smart Verdict

WallStSmart Research — data-driven comparison

HDFC Bank Limited ADR generates 869046% more annual revenue ($2.85T vs $327.37M). TFSL leads profitability with a 27.7% profit margin vs 26.2%. HDB appears more attractively valued with a PEG of 1.01. HDB earns a higher WallStSmart Score of 78/100 (B+).

HDB

Strong Buy

78

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 8.7Quality: 5.3
Piotroski: 3/9Altman Z: -0.14

TFSL

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 7.0Value: 4.7Quality: 3.8
Piotroski: 4/9Altman Z: -0.46
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HDBUndervalued (+11.2%)

Margin of Safety

+11.2%

Fair Value

$36.29

Current Price

$25.79

$10.50 discount

UndervaluedFair: $36.29Overvalued
TFSLSignificantly Overvalued (-586.7%)

Margin of Safety

-586.7%

Fair Value

$2.18

Current Price

$13.70

$11.52 premium

UndervaluedFair: $2.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HDB5 strengths · Avg: 8.8/10
Operating MarginProfitability
34.8%10/10

Strong operational efficiency at 34.8%

Market CapQuality
$130.27B9/10

Large-cap with strong market position

Profit MarginProfitability
26.2%9/10

Keeps 26 of every $100 in revenue as profit

P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
26.4%8/10

Revenue surging 26.4% year-over-year

TFSL3 strengths · Avg: 9.0/10
Operating MarginProfitability
37.5%10/10

Strong operational efficiency at 37.5%

Profit MarginProfitability
27.7%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

HDB3 concerns · Avg: 2.7/10
Debt/EquityHealth
1.093/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
-0.142/10

Distress zone — elevated risk

TFSL4 concerns · Avg: 2.3/10
Return on EquityProfitability
4.8%3/10

ROE of 4.8% — below average capital efficiency

PEG RatioValuation
72.622/10

Expensive relative to growth rate

P/E RatioValuation
42.5x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : HDB

The strongest argument for HDB centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 26.2% and operating margin at 34.8%. Revenue growth of 26.4% demonstrates continued momentum.

Bull Case : TFSL

The strongest argument for TFSL centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 27.7% and operating margin at 37.5%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : HDB

The primary concerns for HDB are Debt/Equity, Piotroski F-Score, Altman Z-Score.

Bear Case : TFSL

The primary concerns for TFSL are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 42.5x leaves little room for execution misses. Debt-to-equity of 2.60 is elevated, increasing financial risk.

Key Dynamics to Monitor

HDB profiles as a growth stock while TFSL is a mature play — different risk/reward profiles.

TFSL carries more volatility with a beta of 0.73 — expect wider price swings.

HDB is growing revenue faster at 26.4% — sustainability is the question.

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

Bottom Line

HDB scores higher overall (78/100 vs 54/100), backed by strong 26.2% margins and 26.4% revenue growth. Both earn "Strong Buy" and "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.

HDFC Bank Limited ADR

FINANCIAL SERVICES · BANKS - REGIONAL · USA

HDFC Bank Limited offers various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong and Dubai. The company is headquartered in Mumbai, India.

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TFS Financial Corporation

FINANCIAL SERVICES · BANKS - REGIONAL · USA

TFS Financial Corporation, provides retail banking services for consumers in the United States.

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