Axis Bank vs IDFC First Bank Which Is Superior?

Axis Bank and IDFC First Bank are two prominent players in the banking sector in India. Both banks have a strong presence in the market and offer a wide range of financial products and services to customers. While Axis Bank is a well-established player with a larger market capitalization, IDFC First Bank is a relatively newer entrant with a focus on digital banking services. Investors looking to invest in banking stocks may consider the growth potential and competitive advantages of both Axis Bank and IDFC First Bank before making a decision.

Axis Bank or IDFC First Bank?

When comparing Axis 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 Axis 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. Axis Bank has a dividend yield of 0.0%, while IDFC First Bank has a dividend yield of -%. 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 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 Axis Bank P/E ratio at 12.86 and IDFC First Bank's P/E ratio at 21.73. 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 2.08 while IDFC First Bank's P/B ratio is 1.36.

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 0.87%, while IDFC First Bank's is 6.82%. 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 First Bank's ROE at 7.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $68.80 for Axis Bank and ₹65.52 for IDFC First Bank. Over the past year, Axis Bank's prices ranged from $56.40 to $80.00, with a yearly change of 41.84%. 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.