Great Eastern vs HSBC Which Outperforms?

Great Eastern and HSBC are two prominent companies in the financial sector with a strong presence in Asia. Great Eastern is a leading insurance company with a focus on life insurance and wealth management, while HSBC is known for its global banking and financial services. Both stocks have been performing well in the market, but there are key differences in their business models and growth prospects. Investors looking to diversify their portfolio may consider comparing the two companies to make informed investment decisions.

Great Eastern or HSBC?

When comparing Great Eastern 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 Great Eastern 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. Great Eastern has a dividend yield of 1.74%, while HSBC has a dividend yield of 8.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Great Eastern reports a 5-year dividend growth of 8.45% year and a payout ratio of 38.40%. 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 Great Eastern P/E ratio at 13.21 and HSBC's P/E ratio at 7.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Great Eastern P/B ratio is 1.45 while HSBC's P/B ratio is 0.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Great Eastern has seen a 5-year revenue growth of -0.53%, while HSBC's is -0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Great Eastern's ROE at 11.34% and HSBC's ROE at 12.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are S$25.63 for Great Eastern and $47.54 for HSBC. Over the past year, Great Eastern's prices ranged from S$17.08 to S$26.50, with a yearly change of 55.15%. HSBC's prices fluctuated between $36.93 and $48.27, with a yearly change of 30.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.