Axis Bank vs First Bank Which Is More Reliable?

Axis Bank and First Bank are two prominent players in the banking industry, each offering unique investment opportunities for potential shareholders. While Axis Bank, with its strong presence in the Indian market, has shown consistent growth and profitability over the years, First Bank, a leading financial institution in Nigeria, has been expanding its operations and customer base. Both banks have their strengths and weaknesses, making them interesting contenders for investors looking to capitalize on the dynamic banking sector.

Axis Bank or First Bank?

When comparing Axis Bank and 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 Axis Bank and 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. Axis Bank has a dividend yield of 0.0%, while First Bank has a dividend yield of 1.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Axis Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, First Bank reports a 5-year dividend growth of 14.87% year and a payout ratio of 14.99%.

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 Axis Bank P/E ratio at 13.12 and First Bank's P/E ratio at 9.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Axis Bank P/B ratio is 2.13 while First Bank's P/B ratio is 0.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Axis Bank has seen a 5-year revenue growth of -0.69%, while First Bank's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Axis Bank's ROE at 17.36% and First Bank's ROE at 10.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $69.40 for Axis Bank and $14.81 for First Bank. Over the past year, Axis Bank's prices ranged from $56.40 to $80.00, with a yearly change of 41.84%. First Bank's prices fluctuated between $11.20 and $15.87, with a yearly change of 41.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.