HSBC (NYSE: HSBC) and Kearny Financial (NASDAQ:KRNY) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
Get HSBC alerts:This table compares HSBC and Kearny Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HSBC | N/A | 4.13% | 0.32% |
| Kearny Financial | 9.92% | 2.01% | 0.42% |
Insider and Institutional Ownership
2.6% of HSBC shares are owned by institutional investors. Comparatively, 51.2% of Kearny Financial shares are owned by institutional investors. 3.8% of Kearny Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
HSBC has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Kearny Financial has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.
Dividends
HSBC pays an annual dividend of $2.00 per share and has a dividend yield of 4.3%. Kearny Financial pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%.
Analyst Recommendations
This is a summary of current ratings and price targets for HSBC and Kearny Financial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HSBC | 0 | 10 | 3 | 0 | 2.23 |
| Kearny Financial | 1 | 0 | 0 | 0 | 1.00 |
HSBC currently has a consensus target price of $9.00, suggesting a potential downside of 80.67%. Kearny Financial has a consensus target price of $13.50, suggesting a potential downside of 0.37%. Given Kearny Financial’s higher probable upside, analysts clearly believe Kearny Financial is more favorable than HSBC.
Valuation and Earnings
This table compares HSBC and Kearny Financial’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HSBC | $53.82 billion | 3.47 | $9.77 billion | N/A | N/A |
| Kearny Financial | $150.44 million | 9.22 | $18.60 million | N/A | N/A |
HSBC has higher revenue and earnings than Kearny Financial.
HSBC Company Profile
HSBC Holdings plc provides banking and financial products and services. The company operates through Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking segments. The Retail Banking and Wealth Management segment offers personal banking products and services, mortgages and loans, credit cards, insurance and investment products, savings products, international services, and wealth solutions and financial planning services, as well as telephone, Internet, and mobile banking services. The Commercial Banking segment provides services and financing for buyers and suppliers throughout the trade cycle; liquidity and cash management services; capital financing, including debt, equity, and advisory services; and insurance and investment products, such as business and financial protection, trade insurance, employee benefits, corporate wealth management, and other commercial risk insurance products to small enterprises, mid-market companies, and multinationals. The Global Banking and Markets segment is involved in the provision of advisory, financing, prime, research and analysis, securities, trading and sales, and transaction banking services to corporates, financial institutions, and resources and energy groups. The Global Private Banking segment provides private banking, and investment and wealth management services to business owners, entrepreneurs, and senior executives and their families. The company operates through approximately 3,900 offices in 67 countries and territories worldwide. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.
Kearny Financial Company Profile
Kearny Financial Corp. operates as the holding company for Kearny Bank that provides various banking products and services in the United States. It offers various deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. The company also provides various loans comprising one-to-four family mortgage loans; commercial mortgages, including loans secured by multi-family, mixed-use, and nonresidential properties; secured and unsecured business loans; consumer loans, such as home equity loans, home equity lines of credit, account loans, overdraft lines of credit, vehicle loans, personal loans, and loans secured by savings accounts and certificates of deposit; and construction loans to builders/developers and individual homeowners. In addition, it sells insurance products to its customers and the general public through a third party networking arrangement. As of August 16, 2017, the company operated 42 branches located in northern and central New Jersey, and Brooklyn and Staten Island, New York. Kearny Financial Corp. was founded in 1884 and is headquartered in Fairfield, New Jersey.
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