HSBC (NYSE:HSBC) versus Bancorp 34 (OTCMKTS:BCTF) Critical Contrast

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

Risk and Volatility

Bancorp 34 has a beta of 0.31, indicating that its share price is 69% 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.

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Bancorp 34 and HSBC, as provided by MarketBeat.com.

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

Valuation & Earnings

This table compares Bancorp 34 and HSBC”s top-line revenue, earnings per share (EPS) and valuation.

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

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.

Summary

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

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.

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.