Axis Bank vs RBL Bank Which Performs Better?

Axis Bank and RBL Bank are two prominent players in the Indian banking sector, known for their competitive services and innovative products. Both banks have a strong presence in the market and have shown consistent growth over the years. However, their stocks have been subject to fluctuations due to various economic factors and industry trends. Investors looking to invest in these stocks must carefully analyze the financial performance, market share, and growth prospects of both banks before making an informed decision.

Axis Bank or RBL Bank?

When comparing Axis Bank and RBL 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 RBL 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 RBL Bank has a dividend yield of 0.87%. 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, RBL 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 12.66 and RBL Bank's P/E ratio at 8.82. 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 RBL Bank's P/B ratio is 0.68.

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 RBL Bank's is 1.76%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Axis Bank's ROE at 17.36% and RBL Bank's ROE at 8.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $67.00 for Axis Bank and ₹169.20 for RBL Bank. Over the past year, Axis Bank's prices ranged from $56.40 to $80.00, with a yearly change of 41.84%. RBL Bank's prices fluctuated between ₹147.50 and ₹300.70, with a yearly change of 103.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.