WallStSmart

HSBC Holdings PLC ADR (HSBC)vsMorgan Stanley (MS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 16% more annual revenue ($73.17B vs $63.22B). HSBC leads profitability with a 35.2% profit margin vs 24.7%. HSBC appears more attractively valued with a PEG of 1.20. HSBC earns a higher WallStSmart Score of 77/100 (B+).

HSBC

Strong Buy

77

out of 100

Grade: B+

Growth: 10.0Profit: 7.5Value: 6.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.33

MS

Strong Buy

73

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 5.7Quality: 4.8
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HSBC6 strengths · Avg: 9.7/10
Market CapQuality
$318.28B10/10

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

EPS GrowthGrowth
2398.0%10/10

Earnings expanding 2398.0% YoY

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

MS6 strengths · Avg: 8.8/10
Market CapQuality
$297.06B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
40.6%10/10

Strong operational efficiency at 40.6%

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

Areas to Watch

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

Distress zone — elevated risk

Debt/EquityHealth
2.791/10

Elevated debt levels

MS3 concerns · Avg: 3.0/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.60B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : MS

The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 40.6%. Revenue growth of 16.3% demonstrates continued momentum.

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.

Bear Case : MS

The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

MS carries more volatility with a beta of 1.18 — 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

HSBC scores higher overall (77/100 vs 73/100), backed by strong 35.2% margins and 58.4% revenue growth. 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.

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.

Morgan Stanley

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.

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