Bajaj Finserv vs Bajaj Finance Which Performs Better?

Bajaj Finserv and Bajaj Finance are two prominent companies in the Indian financial sector, both part of the Bajaj Group. While Bajaj Finserv operates in various financial services such as insurance, lending, and wealth management, Bajaj Finance primarily focuses on consumer lending and financial services. Both companies have shown strong financial performance and growth in recent years, making them attractive investment options for investors looking to capitalize on the expanding financial market in India.

Bajaj Finserv or Bajaj Finance?

When comparing Bajaj Finserv and Bajaj Finance, 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 Bajaj Finserv and Bajaj Finance.

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. Bajaj Finserv has a dividend yield of 0.06%, while Bajaj Finance has a dividend yield of 0.51%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bajaj Finserv reports a 5-year dividend growth of -1.78% year and a payout ratio of 0.00%. On the other hand, Bajaj Finance reports a 5-year dividend growth of 49.63% 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 Bajaj Finserv P/E ratio at 31.47 and Bajaj Finance's P/E ratio at 28.67. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bajaj Finserv P/B ratio is 3.92 while Bajaj Finance's P/B ratio is 5.08.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bajaj Finserv has seen a 5-year revenue growth of 1.92%, while Bajaj Finance's is 1.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bajaj Finserv's ROE at 10.71% and Bajaj Finance's ROE at 20.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1674.60 for Bajaj Finserv and ₹7075.00 for Bajaj Finance. Over the past year, Bajaj Finserv's prices ranged from ₹1419.05 to ₹2029.90, with a yearly change of 43.05%. Bajaj Finance's prices fluctuated between ₹6187.80 and ₹7830.00, with a yearly change of 26.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.