Canara Bank vs Axis Bank Which Should You Buy?

Canara Bank and Axis Bank are two major players in the Indian banking sector, each with their own unique strengths and weaknesses. Canara Bank, established in 1906, has a strong presence in South India and a focus on rural and agricultural loans. Axis Bank, founded in 1993, has a more modern approach with a focus on retail banking and innovative digital services. Investors looking to invest in the banking sector may consider factors such as asset quality, loan growth, and profitability when comparing Canara Bank vs Axis Bank stocks.

Canara Bank or Axis Bank?

When comparing Canara Bank and Axis 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 Canara Bank and Axis 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. Canara Bank has a dividend yield of 3.02%, while Axis Bank has a dividend yield of 0.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canara Bank reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Axis 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 Canara Bank P/E ratio at 6.04 and Axis Bank's P/E ratio at 12.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canara Bank P/B ratio is 0.94 while Axis Bank's P/B ratio is 2.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canara Bank has seen a 5-year revenue growth of 1.64%, while Axis Bank's is -0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canara Bank's ROE at 16.75% and Axis Bank's ROE at 17.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹104.00 for Canara Bank and $67.00 for Axis Bank. Over the past year, Canara Bank's prices ranged from ₹82.69 to ₹128.90, with a yearly change of 55.88%. Axis Bank's prices fluctuated between $56.40 and $80.00, with a yearly change of 41.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.