Axis vs IDBI Bank Which Is More Reliable?

Axis Bank and IDBI Bank are two prominent players in the Indian banking sector, both offering a range of financial services to customers. Axis Bank, known for its strong customer base and technological innovation, has consistently delivered solid financial performance, making it a popular choice among investors. On the other hand, IDBI Bank has faced challenges in recent years due to non-performing assets and a government bailout. Investors are closely monitoring the performance of these two banks to make informed investment decisions.

Axis or IDBI Bank?

When comparing Axis and IDBI 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 IDBI 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 1.34%, while IDBI Bank has a dividend yield of 1.76%. 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, IDBI 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 11.09 and IDBI Bank's P/E ratio at 13.53. 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 1.75 while IDBI Bank's P/B ratio is 1.67.

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 IDBI Bank's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Axis's ROE at 16.85% and IDBI Bank's ROE at 12.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1344.00 for Axis and ₹84.65 for IDBI Bank. Over the past year, Axis's prices ranged from ¥1028.00 to ¥1664.00, with a yearly change of 61.87%. IDBI Bank's prices fluctuated between ₹63.40 and ₹107.90, with a yearly change of 70.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.