Financial Comparison: Grupo Cibest (NYSE:CIB) vs. HSBC (NYSE:HSBC)

Grupo Cibest (NYSE:CIB) and HSBC (NYSE:HSBC) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Grupo Cibest and HSBC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Cibest	2	7	0	0	1.78
HSBC	0	6	5	0	2.45

Grupo Cibest presently has a consensus price target of $67.00, suggesting a potential downside of 2.53%. HSBC has a consensus price target of $63.00, suggesting a potential downside of 32.76%. Given Grupo Cibest’s higher possible upside, equities research analysts clearly believe Grupo Cibest is more favorable than HSBC.

Volatility and Risk

Grupo Cibest has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, HSBC has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Earnings & Valuation

This table compares Grupo Cibest and HSBC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Cibest	$10.45 billion	1.56	$764.13 million	$3.60	19.09
HSBC	$131.35 billion	2.45	$22.29 billion	$6.10	15.36

HSBC has higher revenue and earnings than Grupo Cibest. HSBC is trading at a lower price-to-earnings ratio than Grupo Cibest, indicating that it is currently the more affordable of the two stocks.

Dividends

Grupo Cibest pays an annual dividend of $4.90 per share and has a dividend yield of 7.1%. HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 2.1%. Grupo Cibest pays out 136.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HSBC pays out 32.5% of its earnings in the form of a dividend.

Profitability

This table compares Grupo Cibest and HSBC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Cibest	8.41%	21.07%	2.18%
HSBC	16.06%	13.35%	0.82%

Institutional and Insider Ownership

1.5% of HSBC shares are owned by institutional investors. 0.0% of HSBC 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.

Summary

HSBC beats Grupo Cibest on 10 of the 16 factors compared between the two stocks.

About Grupo Cibest

Bancolombia S.A., together with its subsidiaries, provides banking products and services in Colombia and internationally. The company operates through nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and All Other. It offers checking and savings accounts, money market accounts, time deposits, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, and overdrafts; factoring; and financial and operating leasing services. The company provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services comprising selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency and trade finance solutions; letters of credit and bills collection; insurance and bancassurance products; telephone and mobile phone banking services; and online and computer banking services. Further, the company provides project and acquisition finance, loan syndication, corporate loans, debt and equity capital markets, principal investments, mergers and acquisition, hedging strategy advisories, restructurings, and structured financing; mutual and pension funds, private equity funds, payment and corporate trust, and custody; internet-based trading platform; inter-bank lending and repurchase agreements; managing escrow accounts, and investment and real estate funds; credit cards; roadside and medical assistance services; and transportation, maintenance and remodeling, and outsourcing services, as well as provides technology services. Bancolombia S.A. was founded in 1875 and is headquartered in Medellín, Colombia.

About HSBC

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions. This segment serves personal banking and high net worth individuals. The Commercial Banking segment provides credit and lending, treasury management, payment, cash management, commercial insurance, and investment services; commercial cards; international trade and receivables finance services; foreign exchange products; capital raising services on debt and equity markets; and advisory services. It serves small and medium sized enterprises, mid-market enterprises, and corporates. The Global Banking and Markets segment offers financing, advisory, and transaction services; and credit, rates, foreign exchange, equities, money markets, and securities services; and engages in principal investment activities. It serves government, corporate and institutional clients, and private investors. HSBC Holdings plc was founded in 1865 and is headquartered in London, the United Kingdom.