Canara Bank vs First Bank Which Is More Profitable?

Canara Bank and First Bank are two major players in the banking industry, each with a unique set of strengths and weaknesses. Canara Bank, a leading public sector bank in India, has a long-standing reputation for stability and reliability. On the other hand, First Bank is a rapidly growing financial institution known for its innovative products and services. Both stocks offer potential for growth and value for investors seeking exposure to the banking sector. It is important to carefully evaluate the financial health and performance of each bank before making investment decisions.

Canara Bank or First Bank?

When comparing Canara Bank and First 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 First 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 First Bank has a dividend yield of 1.64%. 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, First Bank reports a 5-year dividend growth of 14.87% year and a payout ratio of 14.99%.

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 First Bank's P/E ratio at 9.17. 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 First Bank's P/B ratio is 0.92.

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 First Bank's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canara Bank's ROE at 16.75% and First Bank's ROE at 10.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹104.00 for Canara Bank and $14.56 for First Bank. Over the past year, Canara Bank's prices ranged from ₹82.69 to ₹128.90, with a yearly change of 55.88%. First Bank's prices fluctuated between $11.20 and $15.87, with a yearly change of 41.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.