Head to Head Contrast: HSBC (NYSE:HSBC) & Bancorp 34 (OTCMKTS:BCTF)

HSBC (NYSE:HSBC) and Bancorp 34 (OTCMKTS:BCTF) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Volatility and Risk

HSBC has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Bancorp 34 has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.

Profitability

This table compares HSBC and Bancorp 34’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HSBC	15.70%	10.71%	0.69%
Bancorp 34	-0.27%	-0.17%	-0.02%

Analyst Ratings

This is a breakdown of current recommendations and price targets for HSBC and Bancorp 34, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HSBC	1	1	0	1	2.33
Bancorp 34	0	0	0	0	0.00

Earnings and Valuation

This table compares HSBC and Bancorp 34″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HSBC	$131.13 billion	1.27	$23.53 billion	$6.05	7.59
Bancorp 34	$28.85 million	2.64	-$3.40 million	($0.28)	-41.21

HSBC has higher revenue and earnings than Bancorp 34. Bancorp 34 is trading at a lower price-to-earnings ratio than HSBC, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

1.5% of HSBC shares are owned by institutional investors. Comparatively, 6.5% of Bancorp 34 shares are owned by institutional investors. 0.0% of HSBC shares are owned by company insiders. Comparatively, 7.4% of Bancorp 34 shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

HSBC beats Bancorp 34 on 10 of the 13 factors compared between the two stocks.

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.

About Bancorp 34

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking products and services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand and time deposits, NOW accounts, and individual retirement accounts, as well as certificates of deposit. The company also provides term, working capital, construction, USDA, small business administration, equipment, assisted living and skilled nursing, renewable energy and solar equipment, and commercial real estate loans; and small to medium size business and business acquisitions financing; lines of credit; multi-family finance; and employee stock ownership plans, HOA lending, and investor pools of single family rentals. In addition, it offers credit and debit cards; safe deposit boxes; treasury management products; and merchant card processing, cash management, e-banking, mobile and online banking, bill payment, and merchant capture services. The company operates through its network of full-service branches in Scottsdale and Arizona, as well as Alamogordo and Las Cruces, New Mexico. Bancorp 34, Inc. was founded in 1934 and is headquartered in Scottsdale, Arizona.