Axis vs HSBC Which Should You Buy?

Axis Bank Ltd. and HSBC Holdings plc are two major players in the global banking and financial services industry. Both companies have significant market capitalization and a strong presence in multiple countries. While Axis Bank is based in India and primarily focuses on serving the domestic market, HSBC is a British multinational bank with operations in various regions worldwide. This comparison will analyze their stock performance, financial health, and future growth prospects to provide insights for potential investors.

Axis or HSBC?

When comparing Axis and HSBC, 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 HSBC.

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 1.31%, while HSBC has a dividend yield of 8.4%. 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, HSBC reports a 5-year dividend growth of 0.62% 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 11.34 and HSBC's P/E ratio at 7.48. 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 1.80 while HSBC's P/B ratio is 0.92.

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 HSBC's is -0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Axis's ROE at 16.85% and HSBC's ROE at 12.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1347.00 for Axis and $48.29 for HSBC. Over the past year, Axis's prices ranged from ¥1028.00 to ¥1664.00, with a yearly change of 61.87%. HSBC's prices fluctuated between $36.93 and $48.76, with a yearly change of 32.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.