Quick verdict: GS vs HSBC in 2026

HSBC demonstrates a stronger overall edge in this **gs vs hsbc stock comparison 2026**, leading on key fundamental metrics including growth, value, and profitability. While GS receives a higher buy rating percentage from analysts and a positive price target upside, HSBC presents a more compelling financial picture across many core indicators, notably its significant theoretical DCF upside. HSBC is the clear growth leader with positive revenue momentum, while its lower P/E and P/B ratios make it the value leader. HSBC also holds the lead in margins and dividend yield. This is not investment advice.

GS vs HSBC: key metrics side by side

Full side-by-side comparison of GS and HSBC across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-04.

GS vs HSBC valuation comparison

When assessing the **gs vs hsbc valuation**, HSBC appears to offer a more attractive entry point based on several key metrics. HSBC’s trailing twelve-month (TTM) P/E ratio stands at 14.09x, which is notably lower than Goldman Sachs’s P/E of 15.53x. This suggests that investors are paying less for each dollar of HSBC’s earnings compared to GS. Similarly, HSBC’s P/B ratio of 1.77x is also more favorable than GS’s 2.28x, indicating a lower price relative to its book value. These figures suggest HSBC is currently priced more conservatively.

Delving deeper into future value, the Discounted Cash Flow (DCF) analysis presents a stark difference. HSBC boasts a remarkable DCF upside of +111.7%, implying its fair value is significantly higher than its current trading price of $91.95. In contrast, GS’s DCF of $873.96 suggests a -5.4% downside from its current price of $923.71. This substantial difference in DCF estimates makes HSBC appear significantly cheaper from a long-term intrinsic value perspective, highlighting a potential undervaluation. Considering these **gs vs hsbc fundamentals and valuation** metrics, HSBC clearly offers greater value proposition.

GS vs HSBC growth comparison

In terms of growth, HSBC demonstrates stronger momentum compared to Goldman Sachs. HSBC reported a revenue growth of +3.2% year-over-year, indicating a healthy expansion in its top line. This positive growth signals increasing business activity and market penetration. On the other hand, Goldman Sachs experienced a revenue decline of -1.4% year-over-year. This negative growth suggests challenges in expanding its revenue base, which could be a concern for growth-oriented investors looking at a **gs vs hsbc stock comparison 2026**.

Beyond top-line growth, profitability margins also provide insight into operational efficiency supporting growth. HSBC’s EBITDA margin stands at 26.3% and its net margin at 17.46%, both superior to GS’s EBITDA margin of 22.51% and net margin of 16.31%. While direct forward estimates are not provided, HSBC’s current revenue growth and better margins suggest a more robust operational performance and potential to convert revenue into profit more efficiently. Therefore, HSBC clearly has stronger momentum in driving revenue and maintaining higher profitability on that revenue compared to GS.

GS vs HSBC profitability

Examining the profitability, HSBC edges out Goldman Sachs in several key areas. HSBC’s net margin is 17.46%, which is higher than GS’s 16.31%. A higher net margin indicates that HSBC is more efficient at converting its revenue into actual profit for shareholders. This greater efficiency can be a strong indicator of superior operational management and a competitive advantage in the financial services sector. Furthermore, HSBC’s EBITDA margin of 26.3% also surpasses GS’s 22.51%, reinforcing its overall operational efficiency.

When looking at cash generation, the Free Cash Flow (FCF) yield provides crucial insights. HSBC reports an FCF yield of 0%, indicating it’s at least generating enough cash to cover its operations and investments. In contrast, Goldman Sachs has a negative FCF yield of -15.29%, suggesting it is currently burning cash or experiencing significant outflows from its operations or investments. This substantial difference implies that HSBC generates more cash relative to its market capitalization, offering a more stable financial position regarding liquidity and funding future growth. Return on Equity (ROE) is N/A% for both firms, so it cannot be used for comparison.

Analyst ratings: GS vs HSBC

Analyst sentiment presents a mixed picture, with a slight edge for Goldman Sachs concerning price target upside. Out of 55 analysts covering GS, 40.0% have a “Buy” rating, leading to a consensus “Hold.” Their average target price for GS is $995.89, representing a positive upside of +7.8% from its current price of $923.71. This suggests that a significant portion of the analyst community believes GS has room for appreciation in the near term, offering a clear positive outlook on its stock performance.

For HSBC, 19 analysts cover the stock, with 36.8% issuing a “Buy” rating, also resulting in a consensus “Hold.” However, the analyst target price for HSBC is $52, which represents a substantial downside of -43.4% from its current price of $91.95. This stark contrast indicates that while a smaller percentage of analysts recommend buying HSBC, the overall sentiment regarding its near-term price potential is significantly negative. Therefore, analysts prefer GS for its potential price appreciation, despite both stocks holding a “Hold” consensus.

Should I buy GS or HSBC stock in 2026?

For growth investors considering **should i buy gs or hsbc stock 2026**, HSBC appears to be the stronger contender. HSBC demonstrated a positive revenue growth of +3.2% year-over-year, indicating expanding operations and market share. In contrast, GS experienced a revenue decline of -1.4% during the same period. This suggests HSBC has better momentum in expanding its business, which is a critical factor for growth-focused portfolios. Additionally, HSBC’s superior net (17.46% vs 16.31%) and EBITDA (26.3% vs 22.51%) margins indicate more efficient operations.

For value investors, HSBC also offers a more compelling investment case. Its P/E ratio of 14.09x and P/B ratio of 1.77x are both lower than GS’s 15.53x and 2.28x, respectively, suggesting HSBC is currently cheaper relative to its earnings and book value. The most striking difference is the DCF upside: HSBC has an impressive +111.7% upside, implying significant undervaluation, while GS shows a -5.4% downside. This makes HSBC a more attractive option for those focused on buying undervalued assets based on their **gs vs hsbc fundamentals and valuation**.

Income-seeking investors might also find HSBC more appealing. While both companies offer modest dividend yields, HSBC’s dividend yield of 0.04% is double that of GS’s 0.02%. Although both yields are relatively low, for an investor prioritizing even a small income stream, HSBC holds the advantage. Coupled with its superior profitability and cash flow metrics (FCF yield of 0% for HSBC vs -15.29% for GS), HSBC presents a more robust financial picture for consistent returns. This is not investment advice; always conduct your own comprehensive due diligence.

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FAQ: GS vs HSBC