HSBC (NYSE:HSBC) vs. Frederick County Bancorp (MD) (OTCMKTS:FCBI) Financial Analysis

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

Earnings and Valuation

This table compares Frederick County Bancorp (MD) and HSBC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frederick County Bancorp (MD)	$18.62 million	3.11	$2.96 million	N/A	N/A
HSBC	$131.13 billion	0.77	$23.53 billion	$6.05	7.65

HSBC has higher revenue and earnings than Frederick County Bancorp (MD).

Profitability

This table compares Frederick County Bancorp (MD) and HSBC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frederick County Bancorp (MD)	11.41%	N/A	N/A
HSBC	15.70%	10.71%	0.69%

Volatility and Risk

Frederick County Bancorp (MD) has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, HSBC has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Dividends

Frederick County Bancorp (MD) pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. HSBC pays an annual dividend of $1.98 per share and has a dividend yield of 4.3%. HSBC pays out 32.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for Frederick County Bancorp (MD) and HSBC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frederick County Bancorp (MD)	0	0	0	0	0.00
HSBC	1	2	0	1	2.25

Insider and Institutional Ownership

1.5% of HSBC shares are owned by institutional investors. 32.2% of Frederick County Bancorp (MD) shares are owned by company insiders. Comparatively, 0.0% of HSBC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

HSBC beats Frederick County Bancorp (MD) on 10 of the 14 factors compared between the two stocks.

About Frederick County Bancorp (MD)

Frederick County Bancorp, Inc. operates as the holding company for Frederick County Bank that provides various banking services to individuals and commercial enterprises in the Frederick County, Maryland. It offers deposit products, including personal checking accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts, and health savings accounts; and business checking accounts, savings and money market accounts, and certificates of deposits. The company provides home equity, home equity fixed rate, mortgage, installment, vehicle, and unsecured loans, as well as home equity line of credit and lines of credit; and commercial loans, such as term loans, lines of credit, letters of credit, and real estate finance. It also offers cash management services comprising automated clearing house, wire origination, remote deposit capture, and zero balance account services. In addition, the company provides mobile deposit capture, overdraft protection, debit and credit card, automated teller machine, and night depository services; and business courier and merchant processing services, as well as online banking and bill pay services. The company was founded in 2001 and is headquartered in Frederick, Maryland.

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.