Axis Bank vs Yes Bank Which Is a Smarter Choice?

Axis Bank and Yes Bank are two prominent players in the Indian banking sector. Both banks have a significant presence in the country, offering a wide range of financial products and services to their customers. While Axis Bank is known for its strong financial performance and stable growth over the years, Yes Bank has faced challenges in recent times due to issues related to asset quality and management turmoil. Investors closely monitor the performance of these two banking giants to make informed decisions about their investments.

Axis Bank or Yes Bank?

When comparing Axis Bank and Yes 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 Yes 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 Yes 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, Yes 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 Yes Bank's P/E ratio at 34.93. 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 2.08 while Yes Bank's P/B ratio is 1.35.

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 Yes Bank's is 1.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Axis Bank's ROE at 17.36% and Yes Bank's ROE at 4.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $68.80 for Axis Bank and ₹19.85 for Yes Bank. Over the past year, Axis Bank's prices ranged from $56.40 to $80.00, with a yearly change of 41.84%. Yes Bank's prices fluctuated between ₹18.15 and ₹32.85, with a yearly change of 80.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.