Hang Seng Bank (OTCMKTS:HSNGY) versus Freedom Financial (OTCMKTS:FDVA) Critical Analysis

Hang Seng Bank (OTCMKTS:HSNGY) and Freedom Financial (OTCMKTS:FDVA) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Volatility and Risk

Hang Seng Bank has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500. Comparatively, Freedom Financial has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Hang Seng Bank and Freedom Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hang Seng Bank	0	1	0	0	2.00
Freedom Financial	0	0	0	0	0.00

Valuation & Earnings

This table compares Hang Seng Bank and Freedom Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hang Seng Bank	$8.63 billion	3.03	$2.28 billion	N/A	N/A
Freedom Financial	$66.41 million	1.22	$4.71 million	$0.77	14.87

Hang Seng Bank has higher revenue and earnings than Freedom Financial.

Profitability

This table compares Hang Seng Bank and Freedom Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hang Seng Bank	N/A	N/A	N/A
Freedom Financial	7.09%	5.89%	0.43%

About Hang Seng Bank

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprises, and institutional customers in Hong Kong, the Mainland of China, and internationally. It operates through five segments: Wealth and Personal Banking, Commercial Banking, Global Banking, Global Markets, and Other. The company offers personal banking services, including current and savings accounts, time deposits, mortgages and personal loans, credit cards, and insurance, investment, and other wealth management services, as well as consumer lending and wealth management services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment services, and corporate wealth management services; general banking and transaction banking, corporate lending, deposits, and cash management services; and tailored solutions and services in foreign exchange, bullion, equities, fixed income, and securities financing, as well as manages the funding and liquidity position activities. In addition, the company offers retirement benefits, life assurance, fund management, and stock broking services, as well as index compilation and licensing; fund raising and sales; and asset management services. It operates service outlets in Hong Kong; branches in Macau and Singapore; and representative office in Taipei, as well as a network of outlets in the Mainland of China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited operates as a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

About Freedom Financial

Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.