First Bank vs HSBC

First Bank and HSBC are two prominent banking institutions with global reach and longstanding reputations within the financial industry. While First Bank is a domestic bank known for its stability and conservative approach to investment, HSBC is an international banking behemoth with a diverse portfolio of services and a strong presence in key markets worldwide. Investors looking to compare stocks between these two institutions must consider factors such as financial performance, global economic trends, and regulatory environments.

First Bank or HSBC?

When comparing First Bank and HSBC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between First Bank and HSBC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. First Bank has a dividend yield of 1.58%, while HSBC has a dividend yield of 9.32%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. First Bank reports a 5-year dividend growth of 14.87% year and a payout ratio of 19.55%. On the other hand, HSBC reports a 5-year dividend growth of 0.62% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with First Bank P/E ratio at 12.42 and HSBC's P/E ratio at 7.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. First Bank P/B ratio is 0.97 while HSBC's P/B ratio is 0.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, First Bank has seen a 5-year revenue growth of 1.46%, while HSBC's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Bank's ROE at 8.15% and HSBC's ROE at 12.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.94 for First Bank and $43.81 for HSBC. Over the past year, First Bank's prices ranged from $10.51 to $15.87, with a yearly change of 51.00%. HSBC's prices fluctuated between $35.30 and $46.07, with a yearly change of 30.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.