Canara Bank vs Bank of India Which Is More Reliable?

Canara Bank and Bank of India are two prominent public sector banks in India that are listed on the stock exchange. Investors often compare these two banking stocks based on factors such as financial performance, asset quality, and growth potential. Both banks have a strong presence in the market and offer various financial products and services to customers. Analyzing the performance and prospects of Canara Bank and Bank of India stocks can help investors make informed decisions about their investment portfolios.

Canara Bank or Bank of India?

When comparing Canara Bank and Bank of India, 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 Bank of India.

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 3.1%, while Bank of India has a dividend yield of 2.5%. 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, Bank of India 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 5.89 and Bank of India's P/E ratio at 7.41. 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 0.92 while Bank of India's P/B ratio is 0.72.

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 2.09%, while Bank of India's is 1.96%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canara Bank's ROE at 16.75% and Bank of India's ROE at 10.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹101.70 for Canara Bank and ₹111.03 for Bank of India. Over the past year, Canara Bank's prices ranged from ₹77.39 to ₹128.90, with a yearly change of 66.56%. Bank of India's prices fluctuated between ₹96.00 and ₹157.95, with a yearly change of 64.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.