Canara Bank vs ICICI Bank Which Is More Reliable?

Canara Bank and ICICI Bank are two major players in the Indian banking sector, each with its own unique strengths and weaknesses. Canara Bank, established in 1906, is one of the oldest banks in India and has a strong presence in rural and semi-urban areas. On the other hand, ICICI Bank, founded in 1994, is a private sector bank known for its innovative products and technology-driven services. Both banks have a significant market presence and offer investment opportunities for those interested in the banking sector.

Canara Bank or ICICI Bank?

When comparing Canara Bank and ICICI 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 ICICI 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 3.1%, while ICICI Bank has a dividend yield of 0.01%. 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, ICICI 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 5.89 and ICICI Bank's P/E ratio at 18.82. 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 ICICI Bank's P/B ratio is 3.18.

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 ICICI Bank's is 1.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canara Bank's ROE at 16.75% and ICICI Bank's ROE at 18.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹101.70 for Canara Bank and $29.75 for ICICI Bank. Over the past year, Canara Bank's prices ranged from ₹77.39 to ₹128.90, with a yearly change of 66.56%. ICICI Bank's prices fluctuated between $22.02 and $31.60, with a yearly change of 43.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.