Bandhan Bank vs Canara Bank

Bandhan Bank and Canara Bank are two prominent players in the Indian banking sector, each with its own unique strengths and opportunities for growth. Bandhan Bank, a private sector bank, has been making waves with its high growth rate and robust performance in recent years. On the other hand, Canara Bank, a public sector bank, has a long-standing reputation and a wide customer base. Investors looking to diversify their portfolio may consider comparing the stocks of these two banks to make informed investment decisions.

Bandhan Bank or Canara Bank?

When comparing Bandhan Bank and Canara 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 Bandhan Bank and Canara 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. Bandhan Bank has a dividend yield of 1.54%, while Canara Bank has a dividend yield of 3.08%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bandhan Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Canara 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 Bandhan Bank P/E ratio at 12.17 and Canara Bank's P/E ratio at 6.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bandhan Bank P/B ratio is 1.45 while Canara Bank's P/B ratio is 0.97.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bandhan Bank has seen a 5-year revenue growth of 1.84%, while Canara Bank's is 2.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bandhan Bank's ROE at 12.03% and Canara Bank's ROE at 17.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹193.81 for Bandhan Bank and ₹104.00 for Canara Bank. Over the past year, Bandhan Bank's prices ranged from ₹169.15 to ₹263.10, with a yearly change of 55.54%. Canara Bank's prices fluctuated between ₹68.42 and ₹128.90, with a yearly change of 88.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.