Head-To-Head Review: HSBC (NYSE:HSBC) vs. PT Bank Mandiri Persero TBK (OTCMKTS:PPERY)

HSBC (NYSE:HSBC) and PT Bank Mandiri Persero TBK (OTCMKTS:PPERY) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares HSBC and PT Bank Mandiri Persero TBK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HSBC	16.07%	13.10%	0.82%
PT Bank Mandiri Persero TBK	N/A	N/A	N/A

Volatility and Risk

HSBC has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, PT Bank Mandiri Persero TBK has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Earnings and Valuation

This table compares HSBC and PT Bank Mandiri Persero TBK”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HSBC	$131.35 billion	2.12	$22.29 billion	$6.05	13.42
PT Bank Mandiri Persero TBK	$10.03 billion	2.72	$3.43 billion	N/A	N/A

HSBC has higher revenue and earnings than PT Bank Mandiri Persero TBK.

Insider and Institutional Ownership

1.5% of HSBC shares are held by institutional investors. Comparatively, 0.0% of PT Bank Mandiri Persero TBK shares are held by institutional investors. 0.0% of HSBC shares are held by insiders. Comparatively, 0.0% of PT Bank Mandiri Persero TBK shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for HSBC and PT Bank Mandiri Persero TBK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HSBC	0	3	6	0	2.67
PT Bank Mandiri Persero TBK	0	0	0	0	0.00

HSBC currently has a consensus price target of $63.00, suggesting a potential downside of 22.40%. Given HSBC’s stronger consensus rating and higher probable upside, equities analysts plainly believe HSBC is more favorable than PT Bank Mandiri Persero TBK.

Dividends

HSBC pays an annual dividend of $8.98 per share and has a dividend yield of 11.1%. PT Bank Mandiri Persero TBK pays an annual dividend of $0.14 per share and has a dividend yield of 1.2%. HSBC pays out 148.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

HSBC beats PT Bank Mandiri Persero TBK on 11 of the 14 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 PT Bank Mandiri Persero TBK

PT Bank Mandiri (Persero) Tbk provides various banking products and services to individuals and businesses in Indonesia, Singapore, Hong Kong, Timor Leste, Shanghai, Malaysia, the United Kingdom, and the Cayman Islands. The company operates through Wholesale and Retail segments. It offers savings and current accounts, time deposits, demand deposits, and foreign currency savings and current accounts; motorcycle loans, mortgage loan, and housing loans, as well as loans for various purposes, such as education, home renovation, marriage, health, and other needs for individuals; and working capital loans, investment loans, people's business loans, syndicated loans, and micro business loans for businesses. The company also provides investment products comprising mutual funds, stocks, and bonds; life, health, and accident insurance products; credit, debit, and corporate cards; digital banking; e-banking services; digital lending; cash management services; trade finance services, value chain, supply chain management, global and domestic trade, export and import, standby letter of credit, and bank guarantee, as well as spot and forex services; custodial services; treasury services, including cash transaction/liquidity, hedging, and investment products; trust services comprising trustee, paying agent, security agent, escrow agent, monitoring agent, and receiving bank services; and money transfer, remittance services, and venture capital financing. It operates branch offices, sub-branch offices, and overseas branch offices; and ATM facilities. The company was founded in 1998 and is headquartered in Jakarta, Indonesia.