Axis Bank vs IDFC Which Is More Favorable?

Axis Bank and IDFC are two well-known banks in the Indian stock market that have performed differently over the years. Axis Bank is one of the largest private sector banks in India with a strong presence in retail and corporate banking. On the other hand, IDFC is a financial institution that focuses on infrastructure financing and investment banking. Investors looking to compare these two stocks should consider factors such as financial performance, growth prospects, and market conditions.

Axis Bank or IDFC?

When comparing Axis Bank and IDFC, 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 IDFC.

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 IDFC has a dividend yield of 0.92%. 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, IDFC 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 Axis Bank P/E ratio at 12.66 and IDFC's P/E ratio at 19.93. 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 2.05 while IDFC's P/B ratio is 1.29.

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 IDFC's is -0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Axis Bank's ROE at 17.36% and IDFC's ROE at 8.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $67.00 for Axis Bank and ₹107.36 for IDFC. Over the past year, Axis Bank's prices ranged from $56.40 to $80.00, with a yearly change of 41.84%. IDFC's prices fluctuated between ₹104.50 and ₹129.70, with a yearly change of 24.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.