AU Small Finance Bank vs IDFC First Bank Which Performs Better?

AU Small Finance Bank and IDFC First Bank are two prominent players in the banking sector of India. Both banks have a strong presence in the market and offer a wide range of financial services to their customers. Investors looking to invest in these banks need to carefully analyze their financial performance, growth prospects, and market dynamics. Understanding the strengths and weaknesses of AU Small Finance Bank and IDFC First Bank stocks can help investors make informed decisions and maximize their returns in the long run.

AU Small Finance Bank or IDFC First Bank?

When comparing AU Small Finance Bank and IDFC First Bank, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AU Small Finance Bank and IDFC First Bank.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AU Small Finance Bank has a dividend yield of 0.17%, while IDFC First Bank has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AU Small Finance Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, IDFC First Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AU Small Finance Bank P/E ratio at 24.16 and IDFC First Bank's P/E ratio at 21.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AU Small Finance Bank P/B ratio is 2.74 while IDFC First Bank's P/B ratio is 1.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AU Small Finance Bank has seen a 5-year revenue growth of 2.82%, while IDFC First Bank's is 3.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AU Small Finance Bank's ROE at 13.65% and IDFC First Bank's ROE at 7.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹586.45 for AU Small Finance Bank and ₹64.17 for IDFC First Bank. Over the past year, AU Small Finance Bank's prices ranged from ₹553.70 to ₹813.40, with a yearly change of 46.90%. IDFC First Bank's prices fluctuated between ₹59.30 and ₹92.45, with a yearly change of 55.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.