Axis vs Bandhan Bank Which Is More Promising?

Axis Bank and Bandhan Bank are two prominent banking institutions in India with a strong presence in the financial market. Both banks have garnered attention from investors for their performance and growth potential. Axis Bank, a long-established player in the industry, offers a wide range of banking services and has a solid track record. On the other hand, Bandhan Bank, a relatively newer entrant, has quickly made a mark with its innovative approach and rapid expansion. Investors are closely watching the performance of both stocks to make informed decisions about their investment portfolios.

Axis or Bandhan Bank?

When comparing Axis and Bandhan 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 and Bandhan 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 has a dividend yield of 1.36%, while Bandhan Bank has a dividend yield of 1.82%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Axis reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Bandhan 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 P/E ratio at 10.91 and Bandhan Bank's P/E ratio at 9.54. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Axis P/B ratio is 1.73 while Bandhan Bank's P/B ratio is 1.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Axis has seen a 5-year revenue growth of 1.00%, while Bandhan Bank's is 1.84%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Axis's ROE at 16.85% and Bandhan Bank's ROE at 12.61%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1326.00 for Axis and ₹164.20 for Bandhan Bank. Over the past year, Axis's prices ranged from ¥1028.00 to ¥1664.00, with a yearly change of 61.87%. Bandhan Bank's prices fluctuated between ₹164.20 and ₹263.10, with a yearly change of 60.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.