Bandhan Bank vs HSBC Which Is More Lucrative?

Bandhan Bank and HSBC are two prominent players in the banking and financial services industry. Bandhan Bank, a new entrant in the market, has been gaining significant traction with its focus on serving the underserved and unbanked populations in India. On the other hand, HSBC, an established global bank, has a long-standing reputation for its international presence and diversified portfolio of services. Investors looking to capitalize on the potential growth opportunities in the banking sector may find both Bandhan Bank and HSBC stocks appealing options to consider.

Bandhan Bank or HSBC?

When comparing Bandhan Bank 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 Bandhan Bank 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. Bandhan Bank has a dividend yield of 0.85%, while HSBC has a dividend yield of 8.57%. 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, 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 Bandhan Bank P/E ratio at 10.18 and HSBC's P/E ratio at 7.32. 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 1.20 while HSBC's P/B ratio is 0.90.

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 1.80%, while HSBC's is -0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bandhan Bank's ROE at 12.61% and HSBC's ROE at 12.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹173.97 for Bandhan Bank and $47.54 for HSBC. Over the past year, Bandhan Bank's prices ranged from ₹162.80 to ₹263.10, with a yearly change of 61.61%. HSBC's prices fluctuated between $36.93 and $48.27, with a yearly change of 30.71%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.