WallStSmart

HSBC Holdings PLC ADR (HSBC)vsTexas Capital Bancshares Inc (TCBI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

HSBC Holdings PLC ADR generates 4977% more annual revenue ($63.22B vs $1.25B). HSBC leads profitability with a 35.2% profit margin vs 28.7%. HSBC appears more attractively valued with a PEG of 1.20. TCBI earns a higher WallStSmart Score of 79/100 (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

TCBI

Strong Buy

79

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 6.3Quality: 4.3
Piotroski: 6/9Altman Z: -0.54

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

TCBI6 strengths · Avg: 9.2/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

EPS GrowthGrowth
69.6%10/10

Earnings expanding 69.6% YoY

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
13.3x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
16.9%8/10

16.9% 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

TCBI1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
-0.542/10

Distress zone — elevated risk

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 : TCBI

The strongest argument for TCBI centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 28.7% and operating margin at 32.2%. Revenue growth of 16.9% 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 : TCBI

The primary concerns for TCBI are Altman Z-Score.

Key Dynamics to Monitor

TCBI carries more volatility with a beta of 0.67 — 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

TCBI scores higher overall (79/100 vs 77/100), backed by strong 28.7% margins and 16.9% 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.

Texas Capital Bancshares Inc

FINANCIAL SERVICES · BANKS - REGIONAL · USA

Texas Capital Bancshares, Inc. is the banking holding company for Texas Capital Bank, a National Association that offers various banking products and services for commercial companies, professionals and entrepreneurs. The company is headquartered in Dallas, Texas.

Want to dig deeper into these stocks?